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Accounts Receivable Financing

A line of credit secured by your outstanding accounts receivable — a flexible way to access cash tied up in unpaid customer invoices without giving up ownership of them.

A loan secured against the money your customers owe you, with the receivables as collateral rather than sold outright.

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Who it's for

Businesses with a steady book of reliable customers who want cash against it while keeping full control of the customer relationship.

How it works

  1. 1Your receivables ledger is assessed for quality and concentration.
  2. 2You borrow against a percentage of it.
  3. 3You keep collecting from customers yourself — they need not know.
  4. 4As old invoices are paid and new ones raised, the available amount moves with them.

What to watch out for

If a large share of your revenue comes from one or two customers, lenders will lend less against it. Concentration is the single biggest factor here.

At a glance

  • Revolving line secured by outstanding receivables
  • Different structure from invoice factoring — you keep the receivables
  • Credit line grows as your receivables grow
  • Good fit for B2B businesses with steady invoicing

Common questions

How is this different from factoring?

Factoring sells the invoice; this borrows against it. Here you stay in charge of collections and the customer relationship.

Accounts Receivable Financing

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