Accounts Receivable Factoring and Financing
Compare factoring companies and AR lenders for invoice funding, revolving credit lines, and working capital tied to your receivables.
Compare Accounts Receivable Factoring Companies and AR Lenders
If your B2B business waits 30, 60, or 90 days for customers to pay, accounts receivable financing can turn invoices into working capital. Factoring companies commonly advance a portion of an invoice and collect from the customer. AR lenders may use receivables as collateral for a revolving credit line while you keep the collection process. CapitalAx is a financing broker that helps businesses compare accounts receivable factoring services, funding options, and lenders. We work with specialized providers for businesses invoicing $25,000 or more per month.
Key Terms
Who Is It For
- B2B businesses with strong commercial customers
- Staffing and temp agencies
- Manufacturing companies with net terms
- Government contractors waiting on payment
- Growing businesses outpacing their cash cycle
Common Use Cases
- Immediate cash from outstanding invoices
- Payroll funding between collections
- Seasonal business operations
- Growth financing without traditional debt
- Government contract bridge financing
Borrower Scenarios
- A staffing agency with $180K in outstanding net-60 invoices from three Fortune 500 clients, factoring the invoices to receive $155K within 24 hours to cover weekly payroll while the corporate payment cycle completes.
- A government contractor with a $400K approved contract waiting 90 days for federal payment processing, using an AR credit facility to draw 85% of each progress invoice immediately and fund ongoing project costs.
- A manufacturing company with $75K in monthly invoices on net-45 terms, setting up a non-recourse factoring line so they can take on a new $500K annual customer without the cash flow strain of carrying two months of unbilled production.
- A trucking company factoring fuel and maintenance invoices from their top 5 corporate shipping clients, converting $120K in monthly receivables into same-week cash to fund driver payroll and diesel costs.
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Frequently Asked Questions
What is accounts receivable factoring?
Accounts receivable factoring provides cash against unpaid invoices. A factoring company advances part of the invoice value, then receives payment when your customer pays. The structure, advance rate, fees, and collection process vary by provider and customer quality.
Are accounts receivable factoring loans?
Factoring is generally not a term loan. It is a form of accounts receivable funding based on eligible invoices and the credit quality of your customers. An accounts receivable loan or credit line uses those receivables as collateral instead.
What are accounts receivable loans?
Accounts receivable loans are credit facilities secured by eligible invoices. Unlike factoring, the business generally keeps control of collections and borrows against a changing pool of receivables. The lender sets an advance rate and borrowing base based on invoice quality.
What is the difference between factoring and AR lending?
Invoice factoring involves selling invoices to a factor that typically handles collection. AR lending uses receivables as collateral for a loan or credit line, while you generally maintain the customer relationship and collection process.
Is CapitalAx an accounts receivable financing company?
CapitalAx is a financing broker, not a direct factoring company or lender. We help B2B businesses compare accounts receivable financing companies, factoring providers, and AR lenders based on their invoices, customers, and cash flow needs.
What should I look for in an accounts receivable factoring company?
Compare the advance rate, fees, contract term, recourse terms, minimum volume, customer credit requirements, and collection process. The right factoring company depends on your invoice size, customer mix, industry, and how much control you want over collections.
Does CapitalAx work as an accounts receivable factoring broker?
Yes. CapitalAx works as an accounts receivable factoring broker by helping B2B businesses compare specialized factoring companies and AR lenders. We do not purchase invoices or provide the funding directly.
What do accounts receivable factoring services include?
Factoring services can include invoice verification, an advance on eligible invoices, collection support, and reserve release after your customer pays. The exact services depend on the provider and whether the arrangement is recourse or non recourse.
Can factoring companies buy accounts receivable?
Yes. In invoice factoring, a factor purchases or takes an assignment of eligible invoices and advances cash before the customer pays. The factor's approval depends largely on the credit quality of your customers and the terms of the invoices.
Can I use accounts receivable financing as a line of credit?
Some AR lenders offer a revolving credit line secured by eligible receivables. Your available borrowing amount rises or falls with approved invoices. This differs from factoring because you usually keep control of collections and draw only when needed.