Accounts receivable financing turns issued B2B invoices into operating cash while customers still sit on net-30, net-60, or net-90 terms.
You have already shipped or performed. Payment is coming — but payroll, suppliers, and the next job are due now.
Typical facilities: $250,000–$15 million, one to twelve months, secured by eligible receivables (and sometimes inventory or equipment in the same file). Repayment aligns with customer remittance — weekly or bi-weekly sweeps on qualified structures.
Jaken Finance Group arranges AR-backed working capital. We originate DSCR and hard money on investment property separately.
Upload or summarize: AR aging, top ten customers by balance, concentration limits, and payment history.
AR financing vs PO vs inventory
| You are here when… | Product |
|---|---|
| Invoices out, cash in | AR financing (this page) |
| PO in hand, need to pay supplier before ship | Purchase order financing |
| Need stock on the shelf, not one invoice pool | Inventory financing |
| Need $50K–$500K, no receivables pledged | Unsecured term loans |
What makes receivables eligible
Lenders discount who owes you and how clean the paper is.
- Creditworthy payors — Investment-grade customer vs disputed small account
- Concentration — Too much AR with one buyer increases risk
- Liens — Existing UCC filings on AR must be disclosed
- Disputes — Chargebacks, warranty holds, and short-pays reduce advance rates
- Government vs commercial — Payment certainty and timing differ
An AR aging report is the starting document — current, 30, 60, 90+, and any credits on account.
AR financing vs merchant cash advance
Merchant cash advances pull daily or weekly from card or ACH receipts at factor-style cost with no clear term end.
AR financing, as arranged here, usually has:
- A defined maturity (1–12 months)
- A borrowing base tied to eligible invoices
- A quoted cost structure per file — not an open-ended factor
If you are already in an MCA, model the swap on refinance a merchant cash advance before adding another layer.
Worked illustration: healthcare services lag (composite)
Illustration only — not a live quote.
A $34 million multi-site outpatient services group adds two locations. Payer remittance runs 45–75 days after claim submission. Payroll and supply vendors are bi-weekly.
- Need: $2.1 million for eight months
- Collateral: Eligible receivables from commercial payers with clean aging
- Repayment: Bi-weekly sweeps as claims pay
- Exit: Self-liquidating as new sites hit steady-state collections; SBA working capital possible later for permanent line
Numbers and geography are illustrative — not a live deal log.
Worked illustration: project billing cycle (composite)
Illustration only — not a live quote.
A $16 million technical services firm completes milestone billing on a twelve-month implementation contract. The customer pays net-45 after each milestone sign-off. Headcount for the next phase must be hired now.
- Need: $740,000 for six months
- Collateral: Milestone invoices issued and accepted, plus corporate guaranty
- Contrast: PO financing would apply before milestones were billable
Hub page: short-term working capital loans.
Combining AR with other collateral
| Collateral mix | Typical use |
|---|---|
| AR only | Services, staffing, healthcare billing |
| AR + inventory | Distribution, manufacturing with WIP |
| AR + equipment | Asset-heavy ops with slow payers |
| AR + real estate | Larger facilities where RE supports the stack |
Real estate on the investment-property side still uses DSCR or bridge — do not mix owner-occupied ops AR with a rental refi on the same form without clarifying entities.
Related guides
- Short-term working capital vs SBA
- SBA alternative financing — when 7(a) is too slow
- Business acquisition bridge — buying a company, not billing lag
Request AR financing terms → · (833) 264-7776
Jaken Finance Group arranges accounts receivable financing for U.S. operating companies. Pricing and structure quoted per file.