Accounts receivable financing, sometimes called invoice financing, allows you to get an advance on unpaid invoices you’ve issued to clients. The best accounts receivable financing companies will have advance rates of 90% or more, with funding speeds of three days or less. These lenders should also provide a combination of excellent customer service, large funding amounts, and repayment terms of 90 days or more.
Based on that criteria, we’ve selected the following six lenders as the best accounts receivable financing companies to consider:
- FundThrough: Best overall for ease of use and tailored funding options
- Clarify Capital: Best for personalized service
- Lendio: Best for multiple loan options
- 1West: Best digital lending process
- Creditfy: Best for small funding amounts
- SBG Funding: Best for short-term financing
Get a business loan in 24-48 hours with Clarify Capital. |
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Best Accounts Receivable Companies at a Glance
Maximum Funding Amount | Maximum Advance Rate | Starting Interest Rate | Time in Business Requirement | Funding Speed | |
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 Provider | Varies | 100% | 2.75% for the first 30 days | 3 months | 24 hours |
 Broker | Varies | Varies | 0.5% to 5% of invoice amount | Not stated | As fast as same-day |
 Broker | $10 million | 90% | 3% per month | 24 hours | |
 Broker | $10 million | Varies | 5% per month | 2 years | 2 weeks |
 Broker | $2 million | Varies | 6.79% per month | 3 months | 24 hours |
 Provider | $5 million | 90% | 0.25% per week | 6 months | 2 to 5 days |
FundThrough: Best Overall for Ease of Use and Tailored Funding Options
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Rates and Terms | |
Starting Interest Rate | 2.75% for the first 30 days |
Estimated APR | 26% and up |
Advance Rate | Up to 100% |
Funding Amount | Varies |
Repayment Terms and Schedule | 12 weeks |
Origination or Maintenance Fees | None |
Prepayment Penalties | None |
Funding Speed | As fast as 24 hours |
Qualifications | |
Credit Score | None |
Time in Business | 3 months recommended |
Annual Revenue | Varies |
Personal Guarantee | Varies, but not typically required |
Why We Like FundThrough
FundThrough is our pick as the best overall accounts receivable financing company because it can deliver an exceptional user experience across the board from start to finish, along with offering competitive rates. Once borrowers get through its easy application process, they can easily link supported accounting software to select the invoices they wish to receive funding for.
QuickBooks and OpenInvoice are two supported accounting platforms, and FundThrough uses AI to determine your maximum funding amount. In other words, as your business continues to grow and evolve, so too does your funding capability. If you don’t use one of these accounting platforms, you can still manually upload invoices.
FundThrough offers two main programs: Velocity and Express. Velocity is best for businesses that regularly invoice clients for $15,000 or more. Companies that invoice smaller amounts may find that FundThrough’s Express program is a better fit.
To learn more or to apply, head to the FundThrough website.
Clarify Capital: Best for Personalized Service
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Rates and Terms | |
Starting Interest Rate | 0.5% to 5% of the invoice amount |
Estimated APR | Varies |
Advance Rate | Varies |
Funding Amount | Varies |
Repayment Terms and Schedule | 90 days |
Origination or Maintenance Fees | Not stated |
Prepayment Penalties | Not stated |
Funding Speed | As fast as same-day |
Qualifications | |
Credit Score | None |
Time in Business | Not stated |
Annual Revenue | Not stated |
Personal Guarantee | May be required |
Why We Like Clarify Capital
If you’re looking for a high level of service, Clarify Capital is a good option to consider. When you work with Clarify Capital, you’ll be assigned a dedicated funding advisor who will walk you through the loan process and guide you to the best financing option based on your unique needs and goals.
Clarify Capital is also a business loan broker with over 75 lenders in its network. This is advantageous to you as a borrower because it can improve the odds of getting approved for the best available terms. Your funding advisor will pair you with eligible lenders.
Other products offered by Clarify Capital include term loans, business credit lines, equipment financing, merchant cash advances, and Small Business Administration (SBA) loans. If there is a better loan option for you, your funding advisor will notify you.
To apply or learn more, visit the Clarify Capital website.
Lendio: Best for Multiple Loan Options
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Rates and Terms | |
Starting Interest Rate | 3% per month |
Estimated APR | Varies |
Advance Rate | Typically up to 90% |
Funding Amount | Up to $10 million |
Repayment Terms and Schedule | Up to 12 months |
Origination or Maintenance Fees | None |
Prepayment Penalties | None |
Funding Speed | As fast as 24 hours |
Qualifications | |
Credit Score | Not stated, but 620 is recommended |
Time in Business | Not stated, but 12 months is recommended |
Annual Revenue | $120,000 annually |
Personal Guarantee | Not stated |
Why We Like Lendio
Lendio is a loan broker with over 75 lenders in its network, and you’ll be paired with a loan specialist who will match you with a lender best suited for your needs. This can save you time and money from having to apply separately to multiple providers while also giving you the best chances of getting approved at the best rates and terms.
One of the downsides of working with a loan broker, however, is that you may not know the exact qualification requirements or loan terms until after you apply. You may also have less flexibility in getting approved if you happen to be outside a lender’s standard approval guidelines.
Lendio’s maximum funding amount is tied to your receivables. Unfortunately, the broker does not disclose minimum requirements for credit score or time in business. Those items will often be determined by the provider you’re paired with.
If you visit Lendio’s website, you can complete an online application in under 15 minutes. If any initial documentation is requested, be sure to provide it as quickly as possible, as your application will not be considered complete until that is done. After receiving a completed application, you can expect a phone call from a Lendio funding manager within several business hours.
1West: Best Digital Lending Process
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Rates and Terms | |
Starting Interest Rate | 5% per month |
Estimated APR | Varies |
Advance Rate | Varies |
Funding Amount | $10,000 to $10 million |
Repayment Terms and Schedule | 30 to 120 days |
Origination or Maintenance Fees | Not stated |
Prepayment Penalties | Not stated |
Funding Speed | 2 weeks |
Qualifications | |
Credit Score | None |
Time in Business | 2 years |
Annual Revenue | Varies |
Personal Guarantee | Not stated |
Why We Like 1West
Although 1West has the longest time in business requirement in our guide, it allows you to get funding without the need to speak with a loan officer or lending representative. It makes this possible with its Automated Business Lending Engine (ABLE), which can be used 24/7 to match you with the best financing options in its network of over 50 lenders.
One of the downsides of 1West is that it has the slowest funding speed out of all the lenders we selected, so it’s a better option for companies that are not in a rush to get funds. Required paperwork also tends to be more comprehensive, as you’ll need to provide two years of business tax returns, year-to-date financial statements, a business debt schedule, and an accounts receivable report.
To apply, head over to the 1West website. The broker also provides other lending products such as working capital loans, real estate financing, SBA loans, equipment financing, and business credit lines.
Creditfy: Best for Small Funding Amounts
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Rates and Terms | |
Starting Interest Rate | 6.79% per month |
Estimated APR | 7% and up |
Advance Rate | Varies |
Funding Amount | Up to $2 million |
Repayment Terms and Schedule | 1 to 2 years |
Origination or Maintenance Fees | Not stated |
Prepayment Penalties | None |
Funding Speed | As fast as 24 hours |
Qualifications | |
Credit Score | 530 |
Time in Business | 3 months |
Annual Revenue | $120,000 annually |
Personal Guarantee | Not stated |
Why We Like Creditfy
With a maximum funding amount of $2 million, Creditfy is a good option for businesses that don’t need large amounts of funding. While its rates are higher than the other lenders in our guide, you should have an easier time getting approved as Creditfy boasts an approval rate of 90%.
Like Lendio, Creditfy is a business loan broker. However, it has exclusive partnerships with certain lenders, something that can improve your approval odds and potentially give you more favorable rates and terms. Working with Creditfy means you’ll be paired with a loan specialist to match you with a loan and lender best suited for your needs. Loan specialists are required to have a minimum of two years of industry experience to give you the best level of service.
If A/R financing is not right for you, consider its other products, which include SBA loans, bridge loans, term loans, and equipment financing. To learn more or to apply, visit the Creditfy website. Applications can be completed in under five minutes, with no negative impact on your credit score.
SBG Funding: Best for Short-term Financing
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Rates and Terms | |
Starting Interest Rate | 0.25% per week (average fixed monthly percentage) |
Estimated APR | 18% and up |
Advance Rate | Up to 90% |
Funding Amount | Up to $5 million |
Repayment Terms and Schedule | Weekly, monthly |
Origination or Maintenance Fees | Not stated |
Prepayment Penalties | None |
Funding Speed | Typically 2 to 5 days |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Annual Revenue | $350,000 annually |
Personal Guarantee | May be required |
Why We Like SBG Funding
For businesses that only need funding for several weeks at a time, SBG Funding can offer some of the lowest rates in our guide. That said, those seeking funding for months at a time may be able to get better pricing elsewhere.
SBG Funding states that it has an approval rate of 85%. However, borrowers should be aware that meeting the minimum qualification requirements does not guarantee approval. Rather, businesses that are weak in any area should be prepared to provide compensating factors to improve the odds of landing approval.
The lender offers a simple online application process that can be completed in minutes. Approvals can then be issued in as little as 24 hours. If the terms are acceptable, you can receive funds within several days. Check out the SBG Funding website to apply or learn more. Applying will not negatively impact your credit score, and there is no obligation to accept a loan offer.
How We Chose the Best Accounts Receivable Financing Companies
We considered the following characteristics in selecting the best accounts receivable financing companies:
- Rates, fees, and estimated APRs
- Maximum advance rates
- Qualification requirements such as credit score, time in business, and revenue
- Approval and funding speeds
- Funding amounts
- Customer reviews and ratings
Alternatives to Accounts Receivable Financing
A/R financing may not be the best option for everyone. If you’re having trouble getting approved, check out our guide on how to get a small business loan for tips on improving your approval odds. There are also other financing options available that charge fewer fees. Here are some alternatives you can consider:
- Invoice factoring: With invoice factoring, it’s possible to get larger funding amounts at lower rates. Factoring shares some similarities with A/R financing, but a key difference is that customers pay a factoring company rather than your business. Check out our top-recommended invoice factoring companies for options.
- Working capital loans: Working capital loans allow funds to be used to cover almost any daily business expense. Common examples include rent, payroll, and other operational costs. Working capital loans tend to have longer repayment terms than A/R financing, so you can borrow more with lower minimum payments. See our picks for the leading working capital loans to find a lender suited to your business needs.
- Small business line of credit: A credit line allows you to draw funds on an as-needed basis to cover costs associated with recurring or unexpected expenses. As you pay down your balance, you can draw additional funds up to your credit limit. We’ve compiled a list of the best small business lines of credit to help you find a provider or broker that fits the bill.
Frequently Asked Questions (FAQs)
It typically costs between 1% and 5% per month to get accounts receivable financing. Other fees that you may be charged can include application fees and closing fees. Some lenders may also require a minimum number or amount of invoices to be financed per month to avoid additional charges.
Accounts receivable financing is sometimes also referred to as invoice financing. However, it is slightly different from invoice factoring. With accounts receivable financing, your company remains responsible for collecting payments from your clients. Invoice factoring, however, assigns that responsibility to the factoring company.
Accounts receivable financing can be issued in as little as 24 hours, but some lenders may take up to two weeks. Same day funding can also be possible if you have recurring funding needs, and your lender has a process in place to allow for faster funding of repeat clients.
Bottom Line
If you have issued invoices to customers but have not yet received payment, A/R financing can get you the funding you need. The best accounts receivable financing companies we’ve selected offer a combination of large loan amounts with low rates and flexible repayment terms. If you’re unable to find a suitable choice, consider some of the alternatives we’ve mentioned.
