When you send an invoice, you have done your part. But waiting 30, 60, or 90 days to get paid can put real pressure on your day-to-day operations. Accounts receivable line of credit financing helps businesses access the value of their unpaid invoices before customers actually pay, so cash flow does not become a constant concern.
What Is It and How Does It Work?
You use your outstanding invoices as collateral to access a line of credit. Most businesses receive between 85% and 90% of the invoice value upfront. When the customer pays, you receive the remaining balance minus a small fee.
Approval is based primarily on your customers' creditworthiness, not yours. This makes it accessible to businesses that may not meet traditional lending requirements.
Which Businesses Use It?
Any business that invoices other businesses and waits on payment can benefit from this type of financing. At EPOCH Financial Group, Inc., we provide accounts receivable finance solutions across industries including manufacturing, staffing, transportation, construction, oil and gas, and government contracting.
It works well for businesses that are:
- Growing but running short on working capital
- Serving customers with 30 to 90 day payment terms
- Managing seasonal dips in cash flow
- In need of fast funding without taking on long-term debt
- Facing reductions in existing bank credit lines
How Does It Sit Against Other Options?
Asset based lending is a broader financing category where assets like equipment, inventory, or real estate serve as collateral. Accounts receivable financing works specifically off your invoices. For businesses with consistent B2B billing, it is usually a faster and simpler route to capital.
Businesses looking for a factoring company in Texas or in any other state will find that our financing is available across the country, with facilities from $1 million to over $50 million.
Is It a Good Fit?
If your business regularly sends invoices to other businesses and waits weeks to get paid, accounts receivable line of credit financing is a practical option to consider. It keeps debt off your balance sheet, requires no heavy collateral, and funding can be in place within 3 to 5 business days.
If your business sells directly to consumers or does not carry a consistent invoice volume, a different financing type may suit you better.
Making Cash Flow More Predictable
Your invoices represent money you have already earned. Accounts receivable line of credit financing lets you put that money to use on your schedule, not your customer's.
At EPOCH Financial Group, Inc., we have been helping businesses access the capital they need since 1999. We look at your industry, your customer base, and your revenue structure to find what fits. If slow-paying invoices are holding your cash flow back, get in touch with our team, and we will help you find a solution that makes sense for your business.
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