Find the Lowest Rates on Invoice Financing

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Invoice Financing at a Glance

Accounts receivables financing companies advance you cash collateralized by your business’s outstanding invoices—giving you an excellent way to put more money into your business right away. With invoice financing, you could get a fast advance of about 85% of the value of your invoices, with most of the other 15% paid to you later. It’s the perfect solution to cover for late-paying customers or cash flow slowdowns.

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Maximum Advance Amount

Approx. 50 to 90% of the total invoice amount.

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Repayment

When customer pays the invoice, you receive the remaining 10-50% reserve amount, minus the fees.

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Factor Fee

Approx. 3% + %/wk outstanding

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Speed

As little as 1 day

The Pros and Cons

  • No need to wait for invoice payment
  • Invoices serve as collateral
  • Based on credit of the invoiced business
  • Can have higher fees than traditional financing
  • Fees based on time for invoice to be paid off

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“Invoice Financing” with Fundera Today!

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Compared to Other Loan Types...

Loan Type
Time to Funding
Avg. Interest Rates
Time to Funding
As little as 1 day
Avg. Interest Rates
Approx. 3% + %/wk outstanding
Time to Funding
As little as 3 weeks
Avg. Interest Rates
Starting at 6.5%
Time to Funding
As little as 2 days
Avg. Interest Rates
7 - 30%
Time to Funding
As little as 2 days
Avg. Interest Rates
8 - 30%
Time to Funding
As little as 1 day
Avg. Interest Rates
7 to 25%
Time to Funding
As little as 1 day
Avg. Interest Rates
Starting at 10%
Time to Funding
1 week
Avg. Interest Rates
1.14 - 1.18
Time to Funding
As little as 2 weeks
Avg. Interest Rates
7.9 - 19.9%
Time to Funding
As little as 1 day
Avg. Interest Rates
5.99 - 36% APR

Who Qualifies for Accounts Receivable Financing?

Any business with a business=to-business model can qualify for invoice financing, as long as they currently have outstanding receivables.

Here’s the deal.

These lenders don’t care as much about your revenue, profitability, or time in business.

Since your invoices will act as the loan’s collateral, lenders just want to make sure the invoices make sense for them to finance. The rest of your business isn’t too important.

How Much Financing Can You Get?

The maximum amount you can qualify for depends on the total amount and quality of your invoices, as well as on your creditworthiness.

It is important to note that some accounts receivable financing lenders take a look at your credit report, too.

Most Customers Who Were Approved Had...

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Annual Revenue

Over $130,000
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Credit Score

600
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Time in Business

Over 1 year

**Based on past Fundera customers.

What Documents Will I Need to Apply?

Driver's License
Voided Business Check
Bank Statements
Credit Score
Outstanding Invoices
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Invoice financing helps you get paid on receivables sooner, so you can seize business opportunities.
Sean Tierney
Senior Loan Specialist
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How Does Invoice Financing Work?

One of the most frustrating aspects of running a growing business is waiting for your invoices to be paid—especially when some customers don’t pay on time.

And delayed payments mean you don’t get to funnel that capital back into your business right away, tying up your working capital and creating a whole host of trouble.

At Fundera, we see this problem all the time with small business owners. That’s why we offer accounts receivable financing on our marketplace.

With accounts receivable financing, you have the chance to get paid for your invoices right away—no need to wait.

Let’s learn more about how it can help.

Solve Cash Flow Problems with Accounts Receivable Financing

What if you could guarantee you’ll see cash for those invoices right away?

That’s essentially what accounts receivable financing—also known as invoice financing—can do for your business.

While accounts receivable financing is sometimes a fairly expensive way to fund your business operations, it lets you deal with a more predictable cash flow. If you’re running short of capital or urgently need to meet upcoming expenses—like taxes, payroll, or even getting started on your next project—then invoice financing can ease the burden on your business.

Plus, you’ll definitely sleep better at night with a reliable inflow of cash.

Accounts Receivable Financing: Crunching the Numbers

Once you agree to collateralize some of your invoices for a loan from a financing company, they’ll advance you typically about 85% of the total value of those invoices.

The remaining 15% gets held in reserve and subjected to fees until your customer pays their invoice off.

From that 15%, your lender first collects a processing fee—often around 3%. They’ll then charge a “factor fee” that depends on how long it takes for your customer to pay up, almost always calculated on a weekly basis.

For example, many lenders charge 1% each week until payment.

Then you’ll receive that 15% minus those fees—which are essentially the price you’re choosing to pay for cash now instead of whenever the customer can complete your invoice.

Simply put...

Accounts receivable financing is a convenience fee for your business’s working capital.

A Different Kind of Accounts Receivable Financing

Although that’s the typical experience, there are other kinds of accounts receivable financing.

Some accounts receivable financers simply advance you 100% of your outstanding invoices. In return, you pay the lender back weekly over a set period of time—often around 12 weeks—until the advance gets cleared.

In this case, you’re never waiting for the customer to settle your debt, although this sometimes means your lender will collect from your customer instead.

Apply to the Industry’s Best
“Invoice Financing” with Fundera Today!

Find Out If You Qualify

What Will Accounts Receivable Financing Cost You?

Let’s say you have a $100,000 invoice with 30-day terms.

Financing & Fees of Accounts Receivable Financing

A financing company might immediately advance you 85% of that amount—$85,000—and hold $15,000 in reserve.

Your customer then pays that invoice 2 weeks later. After subtracting the 3% processing fee of $3,000, the financing company keeps its factoring fee—1% per week, which in this example is 2% or $2,000—and gives you the $10,000 left over.

Was Accounts Receivable Financing Worth It?

You might be feeling like $5,000 is a steep price to pay—but that all depends on your business’s financials.

If you needed money to make payroll a week after sending out that invoice, then your accounts receivable financing lender’s fees don’t seem too bad after all.

Your business’s financial situation might seriously benefit from extra cash flow—so capital right away could definitely be worth those fees.

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