Accounts
receivable
financing.
Unpaid invoices are a problem in all types of businesses. AR financing turns outstanding invoices into working capital so you can cover payroll, purchase inventory, or invest in growth.
Quick facts
Helpful numbers at a glance.
What is accounts receivable financing?
Accounts receivable financing — often called AR financing — is a solution where a business sells outstanding invoices to a finance company so it can receive immediate cash instead of waiting 30, 60, or 90 days.
Put simply, AR financing converts unpaid invoices into working capital so you can cover payroll, buy inventory, or invest in growth without being slowed by late-paying customers.
Accounts receivable loan vs. accounts receivable factoring.
While both accounts receivable financing options — an accounts receivable loan (AR loan) and accounts receivable factoring — provide businesses with immediate cash, there are important differences that affect which option is best for your company.
An accounts receivable loan is essentially a credit agreement where your business’s unpaid invoices serve as collateral. You maintain control of your receivables and remain responsible for collecting payments from your clients. The loan must be repaid according to the agreed terms regardless of whether customers pay their invoices.
By contrast, accounts receivable factoring involves selling your unpaid invoices to a factoring company at a discount. The factoring company then collects payment directly from your customers; because the transaction is treated as a sale rather than a loan, there is no debt on your books to repay. Factoring is often chosen by businesses that prefer to outsource collections and cash-flow management.
How it works
Since this form of financing is based on the customer’s credit instead of your business’s, we can finance a wide variety of different companies—even those that are losing money, startups, or in bankruptcy.
Rather than taking on a debt, you are selling an asset and outsourcing your company’s accounts receivable department. This also means that you can take advantage of valuable services such as credit checks, notification of high risks, detailed monthly statements, and even free credit insurance for some qualifying accounts.
- Credit checks on customers to reduce risk
- Automatic notification of high-risk accounts
- Detailed monthly statements simplifying reconciliation
- Access to credit insurance for qualifying invoices
Minimum requirements for short-term funding
These are the typical criteria we review first when assessing eligibility. If your business is close or has special circumstances, we’ll still evaluate your application — we look at the entire story, not just the numbers.
Quickly estimate your funding options.
Answer a few quick questions and we'll give you a rough estimate of what you may qualify for.
Get the Freedom to Grow
Business shouldn’t stop because of a cash flow gap. At Liberty Commercial Capital, we give you the freedom to operate and grow with smart financing solutions. Contact us today to explore your options and secure the capital your business needs.
How to apply for accounts receivable financing.
Answer a few simple questions about your company so we can match you with the right programs.
We ask about revenue, customers, typical invoice terms, and the funding amount you need — the form takes just a few minutes.
Upload basic documentation to speed underwriting.
Typical documents include recent invoices, bank statements, and ID for the business owner. We’ll guide you through exactly what’s needed.
We present multiple options from our lender network.
Review rates, terms, and funding timelines so you can choose the solution that best fits your cash flow needs.
Once you accept an offer, funds are delivered quickly.
Many AR programs can deliver working capital in as little as 24–72 hours depending on documentation and program selected.
