5 Best Accounts Receivable Financing Companies for 2023

1st Commercial Credit was selected as the best overall provider because it offers the most competitive combination of rates, fees, and other loan terms. It offers the highest funding amount, the second-highest advance rates, and some of the lowest discount rates and estimated APRs listed in our guide.

Up to $10 million in funding is available through this provider, and rates start as low as 0.69%. Credit score requirements can vary, but it’s recommended that you have at least 600 to improve your chances of getting approved. Similarly, the revenue requirement is reviewed on a case-by-case basis and is dependent on a number of factors, such as your industry, time in business, amount of the advance requested, and creditworthiness of your customer.

1st Commercial Credit offers a streamlined process for smaller funding amounts. Businesses requesting less than $350,000 can get approved with no financial documentation. If you need additional funding, you can ensure a faster approval process by preparing certain documentation ahead of time. This provider typically needs to see an accounts receivable aging report, articles of incorporation for your business, copies of your outstanding invoices, and purchase orders (POs).

One downside is that it can take three to five days from application to funding—that’s the longest on our list of providers. However, customer reviews consistently state that the company is very responsive and, in some cases, you can receive a loan decision within 24 hours of applying.

This provider does not have an online application you can complete. To start the process, you can complete an online form requesting a callback or call the company’s toll-free number.

FundThrough’s A/R financing product goes by the name FundThrough Express. It offers financing up to $2 million or even more, which is among the lowest on our list. The provider states that its product is best suited for businesses that regularly invoice less than $15,000 to customers, making it our pick as the best provider for businesses that do not need the larger funding amounts offered by other lenders.

With FundThrough Express, you can get approved for up to $100,000 with no customer verification, although additional funding is available with more documentation. Rates start as low as 0.5% per week for up to 12 weeks. There are no prepayment penalties, so you can choose to repay early to save on fees.

In addition to this provider’s requirements for credit score, time in business, and revenue, you must have at least $100,000 in accounts receivable to one customer. Invoices must be for completed work and may not be for construction or real estate.

A benefit of FundThrough is that your funding limit can be increased over time. For the best experience, it’s recommended that you use one of the company’s preferred accounting software such as QuickBooks Online, OpenInvoice, and Workbench. Once it is linked with your FundThrough account, your funding limit will be determined based on your business invoices and transaction details.

To get started, you can create an account online for free in less than 5 minutes.

Universal Funding is selected as the best provider for startups seeking A/R financing. This is because it has no requirements for time in business, revenue, or credit score. Although other companies in this guide have easy or similar requirements, they also typically recommend a minimum threshold, which is not the case with this provider.

With Universal Funding, invoices that are eligible for funding typically involve payments that you normally would not receive for at least 10 days. Depending on the details of your application and the creditworthiness of your customer, you can get an advance from 80% to 95% of the total invoice amount.

One unique aspect of the company is the fact that it offers accounts receivable insurance. This insurance protects your business in the event that your customer is unable to pay its outstanding invoices. Without it, your business could be responsible for the amount owed. Universal Funding provides an evaluation and recommendation to all its clients as to whether it believes this insurance is necessary.

To get started, you can visit the company’s website and complete a request for a callback.

Lendio has a network of more than 75 lenders, making it a good option if you want to have multiple loan options. The size of this provider’s network and level of customer service also landed it a spot on our list of the best business loan brokers.

An advantage of working with a broker like Lendio is the ability to work with loan specialists who can help you find the best type of loan for your needs. You’ll get a high level of service, and instead of applying to multiple lenders yourself, you can save time by allowing Lendio to do that work for you and narrow it down to a handful of options for you to choose from. Additionally, it knows how to best present your loan, which can improve your chances of securing a loan approval.

One of the downsides, though, is that you may not know the exact qualification requirements or loan terms until after you submit an application. So, it can be difficult to get an upfront comparison of how this provider compares to other companies.

Fortunately, the application process is quick, and you can expect a fast response. You can complete an online application in less than 15 minutes. Once you have uploaded the requested documentation, you can expect a phone call from a Lendio funding manager within 2 business hours.

TAB Bank offers an accounts receivable line of credit and a high level of customer service. A/R financing customers get a dedicated account manager to address any questions or concerns. You’ll also gain access to a team of loan experts who will work with you to find the best type of financing for your business.

The company offers competitive loan terms; however, the qualification requirements and terms will vary on a case-by-case basis. It considers things like the age of your outstanding invoices, the creditworthiness of your customers, and your personal and business credit scores. It also takes into account your business characteristics, such as time in business, industry, and revenue.

In general, it’s recommended that you have a credit score of at least 680 and 6 months’ time in business to improve your chances of getting a loan. This provider does not require any personal guarantee or assets and offers early payment discounts that you can take advantage of to save money.

You can get the process started by completing an online form requesting a callback or by calling the company’s toll-free number.