Month: February 2023

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February 21, 2023

What is Accounts Receivable Financing?

Traditionally known as “Factoring,” Accounts Receivable (AR) Financing is a tool for accelerating AR into cash. The mechanics are simple: Our B2B clients invoice their customers as usual and send us an invoice copy. If the invoice is good, due, and payable, we may* purchase the invoice and make funds available the next business day. Imagine having a portion of your accounts receivable in your bank account the next…

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American Bank Business Finance blog article

How does Accounts Receivable Financing differ from lending?

Commercial banks offer a variety of funding options for business, but mostly short-term and long-term debt, and then not all companies will qualify. A great alternative is accounts receivable financing, or factoring, a tool for improving cash flow through the purchase of credit-worthy, business-to-business invoices. Accounts receivable are short-term assets…

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