Accounts receivable financing
Turn issued invoices into working capital
Accounts receivable financing advances cash against invoices you have already issued to creditworthy customers. Rather than waiting 30, 60, or 90 days to get paid, you access most of the invoice value now and reconcile when your customer pays. Because it is sized to your receivables rather than your personal credit, it is a strong fit for B2B operators whose growth is capped by payment terms.
- Advances against invoices you have already issued
- Funding aligned to your billing cycle
- Sized to your receivables, not your personal credit
- Scales as your invoiced revenue grows
Illustrative example
CS · 2026Invoice advance
$87,000
85% of $102,500 · indicative
Example only. Not an offer of financing, a quote, or a credit decision.
What is accounts receivable financing?
Accounts receivable financing lets a business borrow against, or sell, the invoices it has issued to customers who pay on terms. Instead of waiting out net-30/60/90, you receive a large percentage of the invoice value up front. It is sized to the quality of your receivables and your customers' creditworthiness, which makes it accessible to B2B operators whose own credit file understates the business. It is especially useful in staffing, manufacturing, distribution, logistics, and professional services, where growth often stalls waiting on customer payments.
Two structures live under this umbrella, and they are not the same thing. Invoice financing means you borrow against invoices you still own and continue to collect yourself, so the customer relationship stays with you. Invoice factoring means you sell the invoice to a factor, who then collects from your customer directly. Accounts receivable financing is not automatically factoring. Capital Selector matches you to whichever structure fits your business and your customer relationships.
What it gives you
Receivables-based
Sized to your invoice book and customer quality, not your personal credit profile.
Billing-cycle aligned
Cash arrives while your customer's terms still have weeks to run.
High advance rates
Program-dependent advance percentages against eligible invoice value.
Grows with you
As your invoiced revenue rises, your available funding scales with it.
Frequently asked
Questions, answered plainly.
How does AR financing actually work?+
You issue an invoice as usual, then the financier advances most of its value right away and releases the rest, minus a fee, when your customer pays. The insight is that it converts the value you have already earned but not yet collected into cash today, so it scales with your sales rather than acting as a fixed debt.
Example
You invoice a customer $100,000 on net-60 terms. The financier advances 85% ($85,000) now. When the customer pays 55 days later, you receive the remaining $15,000 minus a fee of, say, $1,500. You had the cash for nearly two months instead of waiting it out.
Is accounts receivable financing the same as factoring?+
Not necessarily. Factoring is one form, where you sell the invoice and the factor collects from your customer. Invoice financing keeps the invoice and the collection relationship with you. They differ in cost, in control, and in whether your customer is even aware, so the right choice depends partly on how sensitive your customer relationships are.
Will my customers know?+
It depends on the structure. Some are notification-based, where the customer is told to pay the financier directly; others are confidential, where you keep collecting and nothing changes from the customer's side. If protecting the customer relationship matters, that points toward a confidential arrangement, which we can prioritize in the match.
What if a customer does not pay?+
This is governed by whether the structure is recourse or non-recourse. Recourse means you ultimately cover an unpaid invoice and is cheaper; non-recourse shifts defined credit risk to the financier at a higher cost. You are essentially deciding whether to buy insurance on your customers' payment, and the right answer depends on how concentrated and creditworthy they are.
How is this different from a line of credit?+
A line of credit is general-purpose revolving capital sized to your whole business. AR financing is tied specifically to your outstanding invoices and scales directly with your billing, so an invoice-heavy business can often access far more through receivables than through a general line. Many operators use a line for everyday needs and AR financing to fund growth that would otherwise be trapped in receivables.
What industries use it most?+
B2B businesses with creditworthy customers on net terms: staffing, manufacturing, wholesale and distribution, logistics and freight, and professional services. The common thread is a gap between doing the work and getting paid for it, which is exactly the gap this structure closes.
Accounts receivable financing vs factoring, explained
Accounts receivable financing is the right structure for B2B operators whose customers pay on terms and whose growth is limited by that wait. Capital Selector sizes the program against your billing patterns and customer concentration, and matches you to invoice financing or factoring based on how much control over collections you want to keep.
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