What is accounts receivable financing?

Accounts receivable (AR) financing advances capital against outstanding B2B invoices you have already issued. Repayment comes when customers pay. It is different from factoring in marketing terms here — we arrange short-term secured facilities quoted per file, not daily factor drafts without a defined term.

When should I use AR financing instead of a line of credit?

Use AR financing when a specific invoice pool or contract ramp creates a timed gap — new clients on net-60 while payroll is weekly. Use a bank revolver when you have years of history and can wait on covenant-heavy setup. Use short-term AR financing when speed and a defined exit inside twelve months matter.

Is accounts receivable financing the same as factoring?

Factoring often means selling invoices with notification to customers and ongoing factor fees. AR financing in this context usually means a secured advance against eligible receivables with a stated term and amortization. Structure is quoted per file — submit aging and customer concentration.

Can AR financing stack with inventory financing?

Yes. Many working-capital files use a borrowing base of eligible AR plus eligible inventory. One facility can monitor both as collateral moves. Submit combined aging and inventory summary on the commercial form.

Does Jaken Finance Group buy my invoices?

Jaken Finance Group originates investment-property loans. For AR-backed operating credit we arrange short-term secured facilities through our capital network. We do not name capital sources on the site.

Accounts Receivable Financing

Accounts receivable financing for B2B operators — advance against invoices, 1–12 months, $250K–$15M. Jaken Finance Group arranges AR facilities nationwide.

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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.

Request AR financing terms →

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.

Short-term working capital vs SBA
SBA alternative financing — when 7(a) is too slow
Business acquisition bridge — buying a company, not billing lag

What to expect after you submit

Submit current aging, concentration by customer, and dispute notes on day one. Lenders advance against eligible invoices only — credits, short-pays, and government billing lags each change the borrowing base. Most AR files quote in three to ten business days when payor quality is clear. If one customer is more than 25–30% of the pool, expect questions on concentration limits and backup payors. Clean, investment-grade receivables typically advance at higher rates than disputed or slow-pay accounts. Government and healthcare payor pools may need extra documentation on remittance cycles before an advance rate is set.

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.

Frequently asked questions

What is accounts receivable financing?: Accounts receivable (AR) financing advances capital against outstanding B2B invoices you have already issued. Repayment comes when customers pay. It is different from factoring in marketing terms here — we arrange short-term secured facilities quoted per file, not daily factor drafts without a defined term.
When should I use AR financing instead of a line of credit?: Use AR financing when a specific invoice pool or contract ramp creates a timed gap — new clients on net-60 while payroll is weekly. Use a bank revolver when you have years of history and can wait on covenant-heavy setup. Use short-term AR financing when speed and a defined exit inside twelve months matter.
Is accounts receivable financing the same as factoring?: Factoring often means selling invoices with notification to customers and ongoing factor fees. AR financing in this context usually means a secured advance against eligible receivables with a stated term and amortization. Structure is quoted per file — submit aging and customer concentration.
Can AR financing stack with inventory financing?: Yes. Many working-capital files use a borrowing base of eligible AR plus eligible inventory. One facility can monitor both as collateral moves. Submit combined aging and inventory summary on the commercial form.
Does Jaken Finance Group buy my invoices?: Jaken Finance Group originates investment-property loans. For AR-backed operating credit we arrange short-term secured facilities through our capital network. We do not name capital sources on the site.

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