Turn Outstanding Invoices Into Cash Today

Your customers owe you money. You need it now, not in 60 days. AR financing converts receivables into working capital within 24-48 hours.

Converting Invoices Into Immediate Working Capital

If you're a B2B business waiting 30, 60, or 90 days for customers to pay, accounts receivable financing turns that waiting game into immediate cash flow. Factoring companies advance 80-90% of your invoice value upfront, then collect from your customer directly. AR-based lending uses your receivables as collateral for a revolving credit facility. Either way, you stop being your customers' bank. CapitalAx works with specialized AR lenders and factoring companies for businesses invoicing $25K or more per month, with funding available in as little as 24 hours.

Key Terms

Advance Rate: 80% to 90% of invoice value
Fee: 1% to 3% per invoice
Volume: $25K+/month invoiced
Speed: Fund in 24 to 48 hours
Contract: Flexible or committed
Recourse: Recourse and non-recourse

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.

Why CapitalAx

Factoring vs. AR Lending Analysis for Your Situation: Factoring and AR lending solve different problems. We evaluate whether selling invoices outright or using them as credit facility collateral makes more sense based on your customer concentration, invoice volume, and desire to maintain direct collection relationships.
Non-Recourse Options to Eliminate Credit Risk: Non-recourse factoring means the factor absorbs the risk if your customer doesn't pay. We connect businesses with non-recourse programs that protect you from customer default, especially valuable for companies dependent on a few large accounts.
24-Hour Funding With Minimal Documentation: AR financing requires your invoices and customer credit profiles, not years of financial statements. We work with factors and AR lenders that fund new clients in as little as 24 hours once the initial setup is complete.

Frequently Asked Questions

What's the difference between factoring and AR lending?

Invoice factoring involves selling your invoices to a factor who takes over collection. AR lending uses your receivables as collateral for a loan or credit line, but you maintain the customer relationship and collection process.