Accounts Receivable Financing

In AR financing, the lender advances funds against the value of your eligible receivables, which serve as collateral. You retain ownership of the invoices and continue collecting from customers, repaying the lender as invoices are paid. Because receivables secure the facility, lenders focus on the quality of those receivables and your customers’ credit.

1. Submit an application through ASBCLF with details about your receivables and customers.
2. ASBCLF matches your application with lenders offering accounts receivable financing.
3. The lender reviews your accounts receivable aging and customer creditworthiness.
4. If approved, you receive an advance against eligible invoices and repay as customers pay.

• Smoothing cash flow while receivables are outstanding
• Funding growth without waiting for customer payments
• Meeting payroll and supplier obligations
• Taking on larger customer orders
• Reducing reliance on a single large customer

• Business-to-business (B2B) receivables
• Creditworthy customers
• Receivables within acceptable aging limits
• Diversified customer base
• Time in business

Eligibility varies by lender and program. ASBCLF submits your application to its lender network; individual lenders set their own criteria and make their own decisions.

• Accounts receivable aging report
• Customer account list
• Outstanding invoices
• Business financial statements
• Business bank statements

You repay the advance as your customers pay their invoices, or through scheduled payments drawn against the receivables. The facility may revolve: as new invoices are issued and paid, additional capital becomes available.

AR financing turns receivables into working capital while you keep ownership. See how it compares to related financing.