Account Receivable Financing
Helping you keep track of your cash flow.
Borrow As Needed
Our account receivable financing acts as an on-demand extension of your cash flow.
Flexible & Renewable
We provide same-day renewals and early pay off discounts for reduced interest.
Pay Only if Used
Get the entire amount needed in one-shot or use as needed. Secured options available.
Why use account receivable financing?
Every business owner wants to expand and grow their business to take it to the next level. Account receivable financing is one of many options that can help overcome the challenge. It’s similar to invoice financing where lenders can use their account receivables as their income and help cash flow that is tied up.
Customers owe money that hasn’t been paid yet, the amount outstanding are the receivables. It’s less of risk than a traditional loan because your business will have money coming in, just not into the bank account.
Invoice financing: It’s simple!
It takes just 5 minutes to fill out your application and just a few hours to get offers!
We help you compare your options with ease and always work to get you the most favorable terms.
Our advisors will make sure that the product you have chosen will suit your business needs best.
How to qualify for account receivable financing?
Account receivable financing can help a business when in need of an income but cash isn’t required. When used the right way, it can help set your business up for success.
Here’s what you’ll need to qualify:
- 3+ months in business
- $110K+ annual revenue
- 550+ credit score
What Is Account Receivable Financing?
ARF is often known as invoice financing in addition to others.
How it works is that a lender will give a certain percentage of your incoming invoices, up to 85%. You pay about 1% on the money owed until the vendor pays. Some lenders, such as BlueVine won’t even check credit score because they are getting paid by the company’s invoices and don’t assume much risk by lending money.
With account receivable financing, a financer can advance you 100% of your outstanding invoices because they are buying your future receivables. When utilizing factoring, you pay the lender back weekly over a set period of time until the advance gets cleared rather than paying them back when the vendor pays. Some business owners prefer this so they aren’t waiting on customers to settle their debt, but this might mean your funder collects directly from the vendor and you don’t see any of the money, which could strain cash flow more if the repayment is not on your terms.
This kind of financing is when purchasing your accounts receivables. Most of these factoring companies will collect from your customers on your behalf. Invoice financing is lending you a percentage of incoming invoices and will collect money directly from you.
How to Qualify?
ARF is considered easy to get, as the main piece of information needed is outstanding invoices.
Despite this funding being asset-based, you will still want to have a healthy business with the strongest credit and revenue you can show. These factors may or may not play a part in funding amount and rates depending on the provider.
The easiest way to get approved for invoice financing is to find a provider who will sync with your accounting software. FundBox and BlueVine both look at accounting software to determine funding amounts and underwrite a business. This makes online funding quick and easy with minimal paperwork.
Funding can help cover gaps in cash flow created by unpaid invoices, yes, however this program isn’t designed to cover delinquent vendors. Outstanding means processed but not paid, not necessarily over due or late. While vendors can be paid, you would be best off utilizing this funding service if you have clients who generally pay on time. A funder is not designed to go after clients for you, you need to ensure your customers pay.
Each lender may require specific information besides the general bank statements, credit score and outstanding invoices. Otherwise, invoice financing primarily relies on one asset: the invoices!
Where To Get It?
Thanks to accounting software, receivable financing can be done completely online. If all of your accounting is done online or through software, transferring business information and getting approved is extremely easy.
Accounts Receivable Financing Compared To Other Options
ARF does come at a cost, but some industries need to pay to have cash now so they can ensure a smooth cash flow. Invoice financing is fast and easy to get, and can cover payroll gaps,
Depending on rates and fees, an invoice financing example could look like this: $100k in outstanding invoices gets you an advance for 85% or $85,000. After a 3% processing fee of $3,000 and 1% weekly fee, a vendor who takes two weeks to pay would cost you $2,000 plus the processing fee of $3,000 totaling $5,000. This may or may not be a lot of your business to pay to have the money immediately when it’s needed.
Improving your company’s working capital through invoice financing can be crucial to keeping operations moving smoothly. While you are paying money to use money, asset based lending through invoice factoring only finances what your business has coming in.
For more on asset based financing options, apply for funding with New York Tribeca Group to find out if there is a financing option that is a better fit for your business’s cash flow, asset, and term length needs.
Got some questions?
This is a financing option that allows businesses to receive early payments on their outstanding invoices.
This allows companies to use their funding at their own pace. This helps improve business investments.
This is a preferred option for businesses because of the flexibility
They have fast approval, flexible credit, and minimal paperwork. But they also come with high interest rates, invoices are needed as proof as collateral, and their approval rates are low.
The best way to describe it is when a borrower leverages their assets to receive financing.
This is when the money that is owed from your customers can help you to qualify for a loan.
Truthfully, both options are similar funding solutions for companies in need of quick access to short-term funding expenses.
Both are costly but have a good amount of perks to even them out.
Filling out our online application only takes 5 minutes and we can find you the best options from there. If you’d like to give us a call and speak to one of our representatives, we’d be happy to answer any questions you may have.
We ask that you have the numbers for your credit score, length in business, and monthly revenue ready to go. These are the major factors we consider when making our decision.
Meeting minimal requirements still gives you a likely chance.
At NYTG, we want to be the best lender for you. We believe in getting you the best deal for your business.
It’s important to have a healthy business overall. A good credit score is important but it is not the major key to making or breaking your approval rate for an invoice