A/R Financing

Another bridge-type product based on a company’s unpaid A/R invoices. Our lenders offer specialized financing that uses up to 85% of your outstanding accounts receivable invoices as collateral. This can get you the cash to make improvements, partner buyouts, expansion, and more.

A/R Financing 4 Step Process

A/R financing, or “invoice factoring,” is a B2B transaction that lets you use your outstanding 30, 60, and 90-day invoices as collateral. Lenders will usually provide an advance on your invoices’ total amount and pay you the remainder once you have been paid in full by your customer.

Present Invoice

You present invoice(s) to the lender, often referred to as the “factoring company.”

Invoice Evaluated

The factoring company evaluates the invoice(s) and then “buys” them from you.

Invoice Value Factored

The factoring company advances you usually from 70-92% of the invoice(s)’ value.

Receive Funds

You receive the remaining funds after your customers pay the invoice(s) in full.


  • Invoice factoring is only available to businesses, not individuals
  • Your invoices must be free and clear of any encumbrances
  • Your invoices must be from commercial or government clients, not retail
  • Any IRS tax liens must already have a payment plan established
  • Your clients’ companies’ must have good business credit scores
  • Your business may not be undergoing a Chapter 11 reorganization
  • Your business must have profit margins of at least 10%
  • Lenders typically won’t lend to people with criminal histories

USDA Loans are close at hand for rural businesses thanks to Lending Source’s wide network of finance partners


Is A/R Financing right for you?


  • Tax-deductible interest
  • Funds usually available in a matter of days
  • Better rates and terms than cash advances
  • No restrictions on how you can use the funds
  • Cash flow is generated on A/R invoices sooner


  • Your profits pending from A/R decreases
  • Funding from invoice factoring is short term
  • Strong cash flow and profit margins required
  • Restrictions on the type of invoice (B2B, B2G)
  • Must demonstrate reliable collections process

Lending Source can help get ALL of your MCA and other debt refinances into one loan

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