Accounts Receivable Financing
Your customers pay in 30, 60, sometimes 90 days. Your payroll, your suppliers and your freight bills do not wait that long. Accounts receivable financing closes that gap. It advances the majority of an invoice value within days of you issuing it, and settles up when your customer pays.
SVS Finance is not the lender. We place your file with the receivables lenders most likely to fund it, negotiate the structure, and stay on the transaction through close. Lines of credit run from $50,000 to $30,000,000, nationwide.
Accounts Receivable Financing Parameters:
| Line of Credit | $50,000 to $30,000,000 |
| Advance Rate | 75% to 95% |
| Discount Rate | 1.5% to 3.0% per 30 Days |
| Funding Speed | Same Day, Once the Facility is in Place |
| Time to Close | As Little as Two Weeks |
| Monthly Minimums | None |
| Collateral | Receivables, Inventory and Confirmed Purchase Orders |
| Real Estate | Not Required |
| Facility Type | Revolving |
| Reporting | Online Submission and Reporting |
| Geography | Nationwide |
Click here to download our Accounts Receivable Financing program flyer
How Accounts Receivable Financing Works
1. You Deliver, Then You Invoice
Ship the goods or complete the work and issue the invoice on your normal terms. Nothing about how you bill your customer changes.
2. The Invoice is Verified
The lender matches it against the purchase order, the proof of delivery or sign-off, and the tracking or bill of lading. Where your customer runs an accounts payable portal, the lender verifies inside it.
3. You Are Advanced 75% to 95% of Face Value
Once the facility is live, fundings are same day.
4. Your Customer Pays on the Original Terms
The reserve, being the remaining balance less the discount fee, is released back to you on collection.
The facility revolves. As one invoice collects, capacity frees up for the next, so the line grows with your sales instead of being fixed at whatever a credit committee approved last year.
How the Pricing Actually Works
Receivables pricing is a discount fee against the invoice, 1.5% to 3.0% for each 30 days the invoice stays outstanding, alongside the lender diligence and administration costs. It is not a one time charge, and the longer your customer takes to pay, the more the facility costs you.
That is the number to ask any receivables lender for: the all in cost over your actual average collection period, not the headline rate for the first 30 days. We run that math with you before you sign anything.
What It Is Not
Not a Real Estate Loan
Your building is not the collateral and does not need to be pledged.
Not a Merchant Cash Advance
There are no daily or weekly debits against your operating account.
Not a Bank Line of Credit
There is no covenant package and no waiting on a quarterly credit committee. These are facilities for growing businesses that banks underserve.
Accounts Receivable Financing, Invoice Factoring and Receivables Lending
The three terms get used interchangeably, and in practice they overlap. Invoice factoring usually describes selling specific invoices at a discount, invoice by invoice. Accounts receivable financing and receivables lending usually describe a revolving facility secured by the ledger as a whole, where you draw against eligible receivables as they are created.
Both structures are available through our lender network, and the right one depends on how concentrated your customer base is and how predictably it pays.
Industries We Finance
| Ammunition | Media and Publishing |
| Apparel and Textiles | Metals and Mining |
| Business Services | Oilfield Services |
| Cannabis | Printing |
| Construction | Professional Services |
| Consumer Goods and Services | Staffing |
| Distribution | Transportation |
| Food and Beverage | Manufacturing |
If your industry is not on that list, send the file anyway. The underwriting question is the quality of your customers, not the label on your business.
What We Need to Get You a Quote
| 1 | Current accounts receivable and accounts payable aging |
| 2 | Two to three sample contracts or master service agreements with matching purchase orders, invoices, sign-offs and bills of lading |
| 3 | Whether your customers run accounts payable portals the lender can log into to verify invoices |
| 4 | Debt schedule |
| 5 | Capitalization table |
| 6 | Two to three years of financial statements plus year to date |
| 7 | Your top 10 to 15 customers with full legal name, address and approximate monthly sales |
Common Questions
How much of my invoice do I get up front?
Between 75% and 95% of face value, depending on your customers and your industry. The remainder, less the discount fee, is released when your customer pays.
How fast is the money?
Two different clocks. Closing the facility takes as little as two weeks from a complete package. After that, fundings against submitted invoices are same day.
Is there a minimum I have to factor every month?
No monthly minimums.
Do I need real estate?
No. The receivables are the collateral. This is one of the few commercial facilities we place that does not touch real property.
My customer pays in 90 days, not 30. Does that still work?
Yes, and it is one of the most common reasons companies come to us. Longer terms cost more, because the discount fee accrues per 30 days outstanding. We will show you the all in cost across your real collection period before you commit.