.jpg?w=288)
.jpg?w=288)
The best accounts receivable financing companies will have advance rates of 90% or more, flexible qualification requirements, and offer funding within just a few days. These lenders should also provide a combination of excellent customer service, large funding amounts, and repayment terms of 90 days or more. Based on those criteria, I’ve selected the following lenders as the best accounts receivable financing companies:
| Provider | Best for | Starting interest rate |
|---|---|---|
| FundThrough | Best overall for ease of use and tailored funding options | Varies |
| Lendio | Best for multiple loan options | 3% per month |
| 1West | Best digital lending process | 5% per month |
| Creditfy | Best for small funding amounts | 1.06% per week |
My methodology
I evaluated accounts receivable financing companies based on the factors that have the greatest impact on a small business’s ability to qualify for funding, access working capital quickly, and keep borrowing costs manageable. I reviewed each provider’s financing terms, qualification requirements, application process, and other features before determining where each company performed best.
The main criteria I considered included:
- Rates and fees: I reviewed starting rates, estimated APRs when available, and potential origination, maintenance, or other financing fees.
- Advance rates: I considered how much of an eligible invoice a business can receive upfront, with higher advance rates generally providing greater access to working capital.
- Qualification requirements: I compared minimum credit scores, time in business, annual revenue requirements, and whether a personal guarantee may be required.
- Funding amounts: I looked at available financing limits and whether providers could accommodate businesses with smaller or larger funding needs.
- Repayment terms: I considered how long businesses have to repay financing and the frequency of required payments.
- Application and funding speed: I evaluated how quickly a business can apply, receive a decision, and access funds after approval.
- Ease of application: I considered online application availability, documentation requirements, accounting software integrations, and other features that can simplify the funding process.
- Customer service and accessibility: I reviewed the level of support available to borrowers, including access to funding specialists or dedicated advisors.
- Customer reviews: I considered borrower feedback and ratings as an additional measure of the overall customer experience.
Since accounts receivable financing is primarily based on unpaid invoices, I placed particular emphasis on advance rates, funding speed, and qualification flexibility. I also considered each provider’s overall combination of cost, accessibility, and financing terms rather than selecting companies based on a single feature.
- Best Accounts Receivable Companies at a Glance
- FundThrough: Best overall for ease of sse and tailored funding options
- Lendio: Best for multiple financing options
- 1West: Best digital lending process
- Creditfy: Best for small funding amounts
- How to choose the right accounts receivable financing option
- Alternatives to accounts receivable financing
- Frequently asked questions (FAQs)
- Bottom line
Best Accounts Receivable Companies at a Glance
| Maximum funding amount | Maximum advance rate | Starting interest rate | Time in business requirement | Funding speed | |
|---|---|---|---|---|---|
| FundThrough | Varies | 100% | Varies | 3 months | 24 hours |
| Lendio | $10 million | 90% | 3% per month | Not stated | 24 hours |
| 1West | $10 million | Varies | 5% per month | 2 years | 2 weeks |
| Creditfy | $2 million | Varies | 1.06% per week | 3 months | 24 hours |
FundThrough: Best overall for ease of sse and tailored funding options
 | |
|---|---|
| Rates and terms | |
| Starting interest rate | 1.9%-2.9% per 30 days, flexible pricing for invoices above $1,000,000 |
| Estimated APR | 33% and up |
| Advance rate | Up to 100% |
| Funding amount | Varies |
| Repayment terms and schedule | Up to 90 days |
| 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 I like FundThrough
FundThrough is the best overall accounts receivable financing company because it can deliver an exceptional user experience across the board from start to finish and offers competitive rates. Once you get through its easy application process, you can easily link supported accounting software to select the invoices for which you wish to receive funding.
QuickBooks and OpenInvoice are two supported accounting platforms, and FundThrough uses AI to facilitate the manual process and 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.
To learn more or to apply, head to the FundThrough website. From there, the application process is simple—you’ll need to provide basic information regarding your contact info, funding request, and business qualifications.
Lendio: Best for multiple financing options
 | |
|---|---|
| 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 | 600 |
| Time in business | 6 months |
| Annual revenue | $96,000 |
| Personal guarantee | Not stated |
Why I like Lendio
Lendio is a loan broker that has over 75 lenders in its network. You’ll be paired with a loan specialist who will match you with lending options applicable to your needs and qualifications, in which you only need a single application to be paired with multiple financing options.
That 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, making this list as the best provider for multiple financing options.
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 are outside a lender’s standard approval guidelines.
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
 | |
|---|---|
| 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 I like 1West
1West is another broker in this roundup that offers various financing options. Although it has the longest time in business requirement listed here, it allows you to get funding without the need to speak with a loan officer or lending representative.
It makes that 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. The simplicity of this application is why I recommend it as the best digital lending process.
One of the downsides of 1West is that it may have longer funding timelines out of all the lenders I selected, so it’s a better option for companies that are not rushing to get funds. Required paperwork is also 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 should you want to pursue other financing options.
Creditfy: Best for small funding amounts
 | |
|---|---|
| Rates and terms | |
| Starting interest rate | As low as 1.06% per week |
| Estimated APR | Varies |
| 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 to 48 hours |
| Qualifications | |
| Credit score | Not stated |
| Time in business | 3 months |
| Annual revenue | $120,000 annually |
| Personal guarantee | Not stated |
Why I like Creditfy
I recommend Creditfy for businesses that don’t need large amounts of funding, given its maximum funding amount of $2 million. It also boasts an approval rate of 90%, which is ideal for borrowers looking for strong odds of approval.
Like Lendio and 1West, 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 must have at least two years of industry experience to give you the best level of service.
If A/R financing is not right for you, you can 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 without a negative impact on your credit score.
How to choose the right accounts receivable financing option
When choosing an accounts receivable financing provider, start with your reason for seeking financing and how you expect to use it. A business covering a temporary cash flow gap may prioritize speed and flexibility, while one that regularly finances invoices may place greater importance on long-term costs and financing limits.
Consider these factors when narrowing down your options:
- Determine how much funding you need: Review your outstanding receivables and decide how much working capital you actually need. This can help you avoid paying for more financing than necessary.
- Calculate the total cost: Look beyond the advertised rate and account for all fees. Compare the expected financing cost with the value of receiving the cash sooner.
- Review your customers’ creditworthiness: Since approval can depend heavily on the customers responsible for paying your invoices, consider whether your receivables are from established, creditworthy businesses.
- Decide how much control you want over collections: Some financing arrangements require the provider to collect payments directly from customers. Consider whether you're comfortable with a third party being involved in those relationships.
- Check whether financing is recourse or nonrecourse: Understand who is responsible if a customer fails to pay an invoice and how that could affect your business.
- Consider how often you'll use financing: Occasional financing needs may call for a different product than regularly financing a large portion of your receivables.
- Read the agreement carefully: Before accepting an offer, review requirements for eligible invoices, minimum commitments, contract length, termination terms, and other restrictions that could affect how you use the financing.
Alternatives to accounts receivable financing
A/R financing may not be the best option for everyone, and there are other financing options that charge fewer fees.
- 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 as needed 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.
- Business credit card: If you need financing to cover emergencies or other short-term expenses, a business credit card can provide you with a revolving credit facility that you can use on an as-needed basis. You can repay the borrowed amount over time, up to your credit limit. For more details, check out our guide on using a credit card to fund your business.
Frequently asked questions (FAQs)
How expensive is accounts receivable financing?
A/R financing can be costly over time. Generally, financing costs anywhere from 1% to 5% per month. 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.
Is accounts receivable financing the same as invoice factoring or invoice financing?
Accounts receivable financing is sometimes referred to as invoice financing. However, it is slightly different from invoice factoring. With accounts receivable financing, your company remains responsible for collecting client payments. Invoice factoring, however, assigns that responsibility to the factoring company.
How quickly can I get accounts receivable financing?
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
A/R financing can be a suitable option if you have issued invoices to customers but haven’t yet received payment and need access to funds. The best accounts receivable financing companies in this guide offer a combination of large loan amounts with low rates and flexible repayment terms. That said, ensuring that A/R financing is the best option for you and potentially considering any alternatives before proceeding with this route is worthwhile.