American Bank Business Finance blog article

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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 which can be sold, and we purchase them*. A bonus is that factoring is considered an expense and not debt. Let’s talk about how we can help fund your business with factoring!

*Subject to credit approval.

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