What is accounts receivable financing?
Accounts receivable financing is simply a way to convert your outstanding invoices into working capital to support a business’s operational expenses or growth initiatives. This type of financing allows businesses to commit invoices to a funding partner and receive immediate funds, instead of waiting 30 to 120 days for payment. This allows companies to access cash that is tied up in unpaid invoices. When a business works with a financing partner, it receives a percentage of the total amount immediately, which can be up to 90%. The remaining balance is paid after the invoice is fully settled, minus a small fee. It’s a common and useful financial tool for companies seeking to improve cash flow and maintain operations smo