6 Best Accounts Receivable Financing Companies 2018

Accounts receivable (A/R) financing companies can provide fast, affordable funding to smooth out a small business’s cash flow or provide them with access to short-term working capital. A/R financing is based on factors like size, credit score, age and whether it’s an individual or group. We reviewed invoice financing companies to choose the six best.

We recommend Fundbox because of their low rates, fast funding times, and because they will advance you 100% of the value of your invoices. They offer funding from $1K – $100K and do not charge any prepayment penalties. You can set up an account with Fundbox for free, sync your accounting software, and within minutes select the invoices you’d like to advance.

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Best Accounts Receivable Financing Companies 2018

	Loan Amount	Advance Rate	Discount Rate
Fundbox	$1,000–$100,000	100%	Starting at 0.5%–0.7% per week
BlueVine	$5,000–$5 million	~85–90%	Starting at 0.25% per week
Payability	Future Invoices: $3,000–$250,000 Daily Invoices: No Maximum	~80–85%	Starting at 1% to 2% per month and 0.75% per week
Paragon Financial Group	$25,000–$10 million	~80–90%	Starting at 1.25% to 2% per 30 days
Harper Partners	$50,000–$5 million	Up to 90%	Starting at 1% to 3% per month
Crestmark	Up to $7.5 million	Up to 90%	Customized

*Last Updated: December 2018

How We Evaluated A/R Financing Companies

We considered a broad range of A/R financing companies to identify the six best providers. In establishing our review criteria, we considered the pain points we’ve heard small businesses express. This includes such things as how much you can borrow, how quickly you can access the needed funds and how difficult it is to qualify for receivables financing.

Based on your wants, the criteria we used to evaluate the best invoice financing include:

• Funding amount: How much you can borrow from each of the A/R financing companies
• Advance rate: What percentage rate the invoice financing companies will advance against your invoices
• Discount rate: What discount rate, similar to an interest rate, the invoice financing companies will charge you to lend against your invoices
• Fees: How much in fees you can expect with the invoice financing companies to charge
• Speed to funding: How quickly the A/R financing companies will provide you with access to the funds you need
• Customer interaction: If and to what extent the invoice financing companies interact with your customers
• Qualifications: What factors the A/R financing companies consider when evaluating your business as a potential borrower

We put together a summary of how A/R financing works if you want to learn more. Based on the criteria we used to evaluate the best, our top choice of invoice financing companies is Fundbox. This is because Fundbox advances up to 100 percent on limits up to $100,000. Since you won’t sell your invoices, you can get funded quickly. Plus, its qualifications fit a wide range of borrowers.

Fundbox: Best Overall Accounts Receivable Financing Company for Small Businesses

Fundbox is great for businesses that want to borrow up to $100,000 without the hassle of selling their invoices and with a 100 percent advance rate. With Fundbox, integration with more than a dozen accounting software programs is supported, making it easy to provide your information. Plus, since Fundbox has no minimum credit score requirement, a wide range of borrowers can qualify.

Fundbox A/R Financing Rates & Fees

The typical rates, costs and fees you can expect from Fundbox are:

• Discount rate: Starting at 0.5% to 0.7% per week
• Origination or maintenance fees: None
• Prepayment penalties or termination fees: None
• Additional fees: None

There are no hidden fees or additional costs with receivables financing at Fundbox. Plus, with Fundbox you can save money by paying off what you owe early since there are no prepayment penalties.

Fundbox A/R Financing Terms

The typical receivables financing terms offered by Fundbox include:

• Funding amount: Up to $100,000
• Advance rate: Up to 100%
• Repayment terms & schedule: 12 or 24 weeks with weekly payments
• Personal guarantee: Not required for smaller limits; possible for larger limits
• Speed to funding: 10 minutes to apply with a decision in as few as three minutes; ongoing funding within 24 hours

Fundbox Receivables Financing Additional Features

Some additional features of A/R financing with Fundbox are:

• Customer interaction: None
• Assignment of invoices: Not required

Since Fundbox invoice financing isn’t tied to your client paying the invoice like it is with traditional invoice factoring, Fundbox will not contact your clients. Your clients can continue to pay you directly. This is different from BlueVine who requires your customers to pay the invoice directly to a bank account it sets up in the name of your business.

Fundbox Accounts Receivable Financing Minimum Qualifications

To evaluate if your business qualifies for A/R financing, Fundbox considers:

• Credit score: No minimum requirement
• Time in business: 6+ months
• Annual revenue: No specific requirement

Fundbox doesn’t have a specific credit score or annual revenue requirement. Rather, you need to give Fundbox access to your bank accounts or accounting software — it supports integration with over a dozen programs — so it can assess your health. The better your business has recently performed, the more funds you can potentially receive.

What Fundbox Invoice Financing Is Missing

The main downside to Fundbox is that the maximum amount of A/R financing it can provide is $100,000. This will be plenty of capacity for many small businesses. However, for others, it won’t be enough.

What Users Think About Fundbox

After reviewing user reviews from around the web, we determined that Fundbox generally has positive ratings. Customers who gave Fundbox positive feedback said the process was made easy and simple by the company’s professional and helpful representatives. Customers who gave Fundbox negative feedback complained about not being able to change the repayment terms to longer periods. Read more on our Fundbox reviews page.

How to Apply with Fundbox

Applying with Fundbox is quick and easy, taking less than 10 minutes with its online application. Once you’ve connected Fundbox to your bank accounts or accounting software, you can be approved within a day and funded within 24 hours of approval.

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BlueVine: Best Accounts Receivable Financing Company for Large Limits up to $5 Million

BlueVine is a great option for businesses needing to borrow up to $5 million in receivables financing. The typical advance rates are 85 to 90 percent and, unlike some of the other invoice financing companies, BlueVine won’t communicate directly with your customers. As a bonus, if you need additional financing, BlueVine also offers a $250,000 small business line of credit.

BlueVine A/R Financing Rates & Fees

The typical rates, costs and fees you can expect from BlueVine are:

• Discount rate: Starting at 0.25% per week
• Origination or maintenance fees: None
• Prepayment penalties or termination fees: None
• Additional fees: $15 wire fee; Automated Clearing House (ACH) is free

BlueVine A/R Financing Terms

The typical receivables financing terms offered by BlueVine include:

• Funding amount: $5,000 to $5 million
• Advance rate: ~ 85% to 90%
• Repayment terms & schedule: Advances are repaid as customers pay their invoices
• Personal guarantee: Required
• Speed to funding: 10 minutes to apply with a decision and funding as soon as the next day; ongoing funding the next day is free via an ACH; same day is $15 via a wire

As with Fundbox, BlueVine has a fully electronic application system. It’s quick to get approved, generally taking less than 10 minutes. If you don’t use QuickBooks, Xero or FreshBooks, then it will take longer to be approved and get funded.

BlueVine Receivables Financing Additional Features

Some additional features of A/R financing with BlueVine are:

• Customer interaction: None
• Type of invoice financing agreement: Recourse

While BlueVine requires your customers to pay the invoice directly to a bank account set up in your business name, it will not communicate with your customers directly. This is different from some of the other A/R financing companies on our list, such as Paragon Financial Group and Crestmark, that will communicate with your customers.

BlueVine is also different from Paragon Financial Group, as you’re responsible for any invoices your customers don’t pay since it offers recourse factoring. With BlueVine, you’ll be given the option of self-paying the invoice or be enrolled in an installment repayment plan. As a bonus, BlueVine also offers a small business line of credit up to $250,000, which might be helpful for some borrowers.

BlueVine Accounts Receivable Financing Minimum Qualifications

To evaluate if your business qualifies for A/R financing, BlueVine considers:

• Credit score: 530+ (check your score here for free)
• Time in business: 3+ months
• Annual revenue: $100,000+

BlueVine is looking for its borrowers to meet its credit criteria and have creditworthy business-to-business (B2B) customers. This is different from Fundbox, which has no minimum credit score requirements.

What BlueVine Invoice Financing Is Missing

One drawback to BlueVine is that your business needs to have a 530 or higher credit score, which is not a requirement for Fundbox. The minimum score BlueVine requires is still low, meaning this drawback will impact only a few A/R financing borrowers. Plus, BlueVine can approve you for amounts up to $5 million, which is much greater than the amount offered by Fundbox.

What Users Think About BlueVine

We compiled user reviews from around the web and determined that BlueVine has a mix of positive and negative ratings. Customers who recommended BlueVine were impressed with its responsive customer support team. Customers also liked that BlueVine discloses all of its rates and fees. Some users weren’t happy they were denied funding. Read more on our BlueVine reviews page.

How to Apply with BlueVine

You can apply for A/R financing with BlueVine via its online application in 10 minutes or less. Funding is as soon as the next day. The total time from the start of your application to funding is typically one to three business days. BlueVine’s application process is one of the simplest we reviewed.

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Payability: Best A/R Financing Company for eCommerce & Amazon Sellers

Payability is a good option for ecommerce businesses who sell directly on marketplaces like Amazon and Walmart. With Payability, ecommerce businesses are able to borrow against future or daily marketplace A/R. The number of marketplaces Payability is able to serve continues to increase, meaning more businesses are able to use this service.

Payability Accounts Receivable Financing Rates & Fees

The typical rates, costs and fees you can expect from Payability are:

• Discount rate:
  • Daily invoices: Flat monthly rate starting at 1% to 2% of gross sales
  • Future invoices: Flat weekly fee starting as low as 0.75% of future receivables
• Prepayment penalties or termination fees: None
• Additional fees: None

If Payability advances against your future receivables and collects sooner than expected, it will provide you with a rebate equal to the number of weeks early the collection occurred. As an example, if collection happened four weeks early on $100,000 in receivables, then your rebate would equal $3,000 ($750 for each week times four).

Payability A/R Financing Terms

The typical receivables financing terms offered by Payability include:

• Funding amount:
  • Daily invoices: No maximum; minimum advance is $100
  • Future invoices: Typically from $3,000 to $250,000; larger limits may be considered with additional approval
• Advance rate:
  • Daily invoices: Up to 80%
  • Future invoices: ~ 80% or 85%
• Repayment terms & schedule: Repaid as your marketplace invoices are paid
• Personal guarantee: Likely required
• Speed to funding: Minutes to apply with a decision and funding within 24 hours

Payability Receivables Financing Additional Features

Some additional features of A/R financing with Payability are:

• Customer interaction: Collection of receivables from your ecommerce marketplace
• Assignment of invoices: Required

Payability helps you with the collection of your ecommerce marketplace A/R, daily or future. Depending on the A/R financing product you choose, you’ll either borrow against daily receivables or future marketplace receivables.

Payability Accounts Receivable Financing Minimum Qualifications

To evaluate if your business qualifies for A/R financing, Payability considers:

• Credit score: Not a factor
• Time in business:
  • Daily invoices: At least 90 days sales history with your ecommerce marketplace
  • Future invoices: At least 6 months of consistent sales history with your ecommerce marketplace
• Annual revenue:
  • Daily invoices: ~$2,000 per month in sales with your ecommerce marketplace
  • Future invoices: ~$5,000 per month in sales on multiple items with your ecommerce marketplace

When qualifying you for A/R financing, Payability cares most about your performance with your ecommerce marketplace like Amazon, Walmart or Etsy. As such, Payability’s qualifications are focused on your marketplace sales volume and history. In addition to your sales history and volume, you need to have good account health.

What Payability Invoice Financing Is Missing

The downside to Payability is that it’s only available to ecommerce marketplace sellers. However, given the growth in ecommerce and the number of people engaging in this type of business, it’s a great niche product if you fit the target profile. Plus, Payability keeps adding additional marketplaces where its financing is available.

What Users Think About Payability

We compiled Payability reviews from around the web and found that it generally has positive ratings. Users who gave Payability a positive review like that they can get their marketplace funds immediately. There weren’t many negative reviews for Payability, but some users experienced some miscommunication with regard to how much it charges for its services. Read more on our Payability reviews page.

How to Apply with Payability

You can apply for A/R financing with Payability online in minutes. The primary step you’ll need to complete is connecting Payability with your marketplace account like Walmart or Amazon. If approved, funding can happen as soon as the next business day.

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Paragon Financial Group: Best Nonrecourse A/R Financing Company

Paragon Financial Group is great for businesses who want nonrecourse A/R financing. It’s also good for businesses with credit issues and can even help businesses with tax or legal issues. Furthermore, Paragon Financial Group lets you specific invoices you want to advance against. As an added bonus, it also offers PO financing if you need cash for purchase orders.

Paragon Financial Group Accounts Receivable Financing Rates & Fees

The typical rates, costs and fees you can expect from Paragon Financial Group are:

• Discount rate: 1.25% to 2% per 30 days
• Origination fee: Small, one-time due diligence fee when you accept its financing offer
• Additional fees: Any additional fees will be disclosed in your A/R financing agreement

Unlike Fundbox and BlueVine, the discount rate charged by Paragon Financial Group includes credit protection and A/R management services. This is a value-added service that may be beneficial for small companies.

Paragon Financial Group A/R Financing Terms

The typical receivables financing terms offered by Paragon Financial Group include:

• Funding amount: $25,000 to $10 million
• Advance rate: ~ 80% to 90%
• Repayment terms & schedule: Repaid as your invoices are paid
• Personal guarantee: Most likely not required
• Speed to funding: Generally 3 to 10 business days for initial funding and less than 24 hours once your account has been established

Paragon Financial Group Receivables Financing Additional Features

Some additional features of A/R financing with Paragon Financial Group are:

• Customer interaction: Required
• Assignment of invoices: Required
• Type of invoice financing agreement: Nonrecourse

Paragon Financial Group is purchasing your invoices, so you can expect them to interact with your customers. It doesn’t, however, act like a collection agency, so it cares about making sure your customers are treated well. As the company is well-established, many customers are accustomed to making payments to Paragon Financial Group.

Paragon Financial Group provides you with credit protection through nonrecourse invoice factoring in the event your customers file for bankruptcy or are otherwise insolvent. Nonrecourse invoice factoring means Paragon Financial Group will collect the money that’s owed from the customer rather than you.

Paragon Financial Group A/R Financing Minimum Qualifications

To evaluate if your business qualifies for A/R financing, Paragon Financial Group considers:

• Credit score: Not a factor; credit problems OK, including slow-paying customers, IRS issues and payroll problems
• Time in business: Not a factor
• Annual revenue: You must factor at least $25,000 in invoices per month, meaning your annual revenue likely needs to be at least $300,000

What Paragon Financial Group Invoice Financing Is Missing

One drawback to Paragon Financial Group is that it is truly purchasing your A/R, unlike Fundbox and BlueVine. However, it is able to work with customers with significant credit problems, which is a benefit.

What Users Think About Paragon Financial Group

We compiled user reviews from around the web and determined that Paragon Financial Group generally has positive ratings. Users who recommend Paragon Financial Group were impressed with the responsive customer support team. Customers also said that the company has helped them solve cash flow problems. No negative reviews were found at the time this article was written. Read more on our Paragon Financial Group reviews page!

How to Apply with Paragon Financial Group

You’ll submit your application to Paragon Financial Group electronically. In addition, you’ll provide your most recent A/R aging report, accounts payable aging report, a customer list and a sample invoice. Once this is done, your assigned Paragon representative will work with you to develop a receivables financing solution. The entire process typically takes 3 to 10 business days.

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Harper Partners: Best Recourse Accounts Receivable Financing Company

The A/R financing product offered by Harper Partners is good for businesses who want to retain recourse. Harper Partners offers advance rates up to 90 percent on a recourse basis, meaning you are responsible if your customers don’t pay. Plus, Harper Partners offers up to $400,000 in working capital financing for borrowers with bad credit, which is an added bonus.

Harper Partners A/R Financing Rates & Fees

The typical rates, costs and fees you can expect from Harper Partners are:

• Discount rate: 1% to 3% per month
• Origination fee: A small one-time fee is possible
• Additional fees: None; review your A/R financing agreement to make sure you understand any potential fees

Harper Partners A/R Financing Terms

The typical receivables financing terms offered by Harper Partners include:

• Funding amount: $50,000 to $5 million
• Advance rate: Up to 90%
• Repayment terms & schedule: Repaid as your invoices are paid
• Personal guarantee: Possible
• Speed to funding: 2 to 5 business days to provide you with the initial funding and less than 24 hours once your account has been established

Harper Partners Receivables Financing Additional Features

Some additional features of A/R financing with Harper Partners are:

• Customer interaction: Available upon your request
• Assignment of invoices: Required
• Type of invoice financing agreement: Recourse is standard; nonrecourse possible with a higher discount rate and lower advance rate

Harper Partners will only contact your customers if you want them to do so. It will send invoices in your name. If your customers are paying slowly and it comes time to collect, Harper Partners is available to provide you with support through polite customer service representatives. Payments for your invoices are directed to an account it establishes in your business name.

The standard invoice financing product offered by Harper Partners is recourse, meaning you are responsible if your customers don’t pay. The length of time Harper Partners will hold an unpaid invoice before requiring you to pay will be established in your A/R financing agreement. If you need nonrecourse factoring, then Harper might be able to assist you but will require a lower advance rate.

Harper Partners A/R Financing Minimum Qualifications

To evaluate if your business qualifies for A/R financing, Harper Partners considers:

• Credit score: Not a factor, but must not have a history of serious legal or tax issues
• Time in business: Not a factor
• Annual revenue: You must factor at least $50,000 in invoices per month, which means your annual revenue likely needs to be at least $600,000

To qualify, you need to work with B2B or business-to-government (B2G) customers. Additionally, your invoices must be due and payable within 90 days and not pledged to another lender.

What Harper Partners Invoice Financing Is Missing

Harper Partners does not require a minimum credit score. However, unlike Paragon Financial Group, it cannot work with your business if you have a history of serious tax or legal issues. If this is your situation, it might be better to choose one of the other invoice financing companies.

What Users Think About Harper Partners

We considered user reviews from around the web and determined that there are not yet very many customer reviews as Harper Partners is still a relatively new company. We expect that businesses will like the transparency that appears to be offered by this company. A drawback might be that it doesn’t offer factoring to businesses with a history of serious tax or legal issues.

How to Apply with Harper Partners

You’ll submit your application to Harper Partners electronically. Harper Partners takes 2 to 5 business days to provide you with initial funding and less than 24 hours thereafter. You can receive up to $5 million in invoice financing with advances rates as high as 90 percent.

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Crestmark: Another Accounts Receivable Financing Company for Growing Companies & Limits up to $7.5 million

Crestmark’s A/R financing is good for a wide range of borrowers, from startups to those with annual revenues in the millions. With invoice financing up to $7.5 million, this means there is room for your relationship with Crestmark to grow. As you grow, Crestmark has a wide variety of options to help you, including business lines of credit and Small Business Administration (SBA) loans.

Crestmark A/R Financing Rates & Fees

The typical rates, costs and fees you can expect from Crestmark are:

• Discount rate: Customized for each borrower
• Additional fees: Any additional fees will be disclosed in your A/R financing agreement

Crestmark offers both recourse and nonrecourse invoice financing. You can expect to pay a higher fee for nonrecourse financing because the invoice financing companies have to spend more time working your account. The fee Crestmark charges depends on the service provided to your business. You’ll get the best rate if you use recourse invoice financing.

Crestmark A/R Financing Terms

The typical receivables financing terms offered by Crestmark include:

• Funding amount: Up to $7.5 million
• Advance rate: Up to 90%
• Repayment terms & schedule: Repaid as your invoices are paid
• Personal guarantee: Possible
• Speed to funding: Cash advances on invoices are provided within as few as 24 hours once approved; approval could take days or weeks

The length of time Crestmark will hold an unpaid invoice before requiring you to collect on it will depend on your specific A/R financing agreement. If you need nonrecourse A/R financing, then Crestmark may be able to assist you but will likely require a lower advance rate and charge you higher fees.

Crestmark Receivables Financing Additional Features

Some additional features of A/R financing with Crestmark are:

• Customer interaction: Depends on your receivables financing arrangement
• Assignment of invoices: Required
• Type of invoice financing agreement: Recourse or nonrecourse

Crestmark will work with you to determine the receivables financing arrangement that works for your business. As it offers both recourse and nonrecourse A/R financing, the level of interaction it has with your customers will vary. Some of the services it is able to provide include investigating and approving your customers for credit terms and collections.

Crestmark A/R Financing Minimum Qualifications

To evaluate if your business qualifies for A/R financing, Crestmark does not rely on:

• Credit score: Not a determining factor
• Time in business: Not a determining factor
• Annual revenue: Not a determining factor

Crestmark is able to provide financing to companies as small as start-ups in most industries, making it great for growing companies wanting to develop a relationship. As with most invoice financing companies we reviewed, the qualifications are based more on your customers than on the financial condition of your business. To qualify, you need to work with B2B customers.

What Crestmark Invoice Financing Is Missing

The most traditional of the A/R financing companies we reviewed, Crestmark isn’t as transparent about its pricing and qualifications as the others on our list. This may indicate that Crestmark is more focused on providing custom solutions than it is on making sure its customers fit within a specific credit box.

What Users Think About Crestmark

We considered user reviews from around the web and determined most comments about Crestmark are positive. Some of the pros included the fact that Crestmark has no or only limited restrictions on the industries in which it is willing to work, and that its customer service representatives are helpful. A negative is that Crestmark offers its best discount rates with recourse financing. However, this practice is not surprising.

How to Apply with Crestmark

You’ll submit your application to Crestmark electronically. Once submitted, Crestmark will assign a relationship manager to work with you on a one-on-one basis to determine the best fit for your business. This may include developing a custom lending solution, which could take days or weeks. Once approved, you can get ongoing funding within 24 hours.

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Alternatives to Invoice Financing Companies

There are several alternatives to A/R financing. In this article, we already reviewed three companies who provide an option that is more akin to invoice factoring than invoice financing. If invoice financing and invoice factoring aren’t good options for your business, there are plenty of alternatives.

The following are some good alternatives to A/R financing companies:

• Business line of credit: A small business line of credit (LOC) allows you to make advances against a pre-established credit limit. An advantage to this you only pay interest on the amount advanced. This is a great alternative if you’re only looking to bridge a short-term need and have good credit.
• Business credit card: An alternative to invoice financing is a business credit card, which is another short-term financing option popular among small businesses. A business credit card is a good option for businesses that are very small, want to manage employee expenses or want to earn rewards.
• SBA loan: If you have been in business 2 or more years, are profitable and have a credit score of 680 or better, than an SBA loan might be right for you. The typical SBA interest rates are lower than what you’ll pay for an invoice financing. While applying for an SBA can be complicated, we’ve tried to make it easier with a step-by-step how-to guide.

Best Alternatives to Accounts Receivable Financing Companies

The Bottom Line

All six of the accounts receivable financing companies reviewed are good options for filling short-term cash flow gaps. If you need up to $100,000, we recommend Fundbox. However, for larger amounts, we recommend BlueVine. The invoice factoring companies we reviewed will provide a financing option for most borrowers.

Fundbox is our top choice. It is the best invoice financing company for those who need up to $100,000 because it’s extremely quick and relatively inexpensive. Unlike the competition, Fundbox advances 100 percent of invoice. Advances are repaid weekly over 12 or 24 weeks, and there are no prepayment penalties.

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