# Accounts receivable financing > Accounts receivable financing is borrowing against your outstanding invoices while you keep them and collect from customers. Source: https://www.37lend.com/business-loans/accounts-receivable-financing Last updated: September 28, 2026 Lenders and funders in our network quote invoice factoring and A/R financing at 15% to 40%, as of September 2026. The lender sets how much you can borrow from the invoices you are owed, so what is available rises and falls with your receivables. Unlike factoring, you keep the invoices and your customers keep paying you. ## Key facts - Is it a loan? Yes. - Kind of funding: advances against sales and invoices. - 15% to 40%: pricing as quoted by lenders and funders in our network for invoice factoring and A/R financing, as of September 2026. Not an APR and not an offer. Compare offers by total cost. See Disclosures below. - One application is matched against 75+ lenders, and looking uses a soft credit inquiry that does not affect your credit score. ## How A/R financing works How it's repaid: How much you can draw rises and falls with the invoices you are owed. 1. The lender reviews your receivables and agrees which invoices count, usually recent ones owed by creditworthy business customers. 2. It sets a borrowing base: a share of those eligible invoices that you can borrow against. 3. You draw up to that base, as a loan or a line of credit, and pay interest and fees on what you use. 4. Your customers pay you as usual, and you repay the lender as invoices are collected. 5. You report on your receivables regularly, often with an aging report, and the amount you can borrow moves with them. ## When it fits, and when it doesn't ### Where it fits - You invoice businesses on payment terms and want cash while you wait. - You'd rather keep control of collections and your customer relationships. - Your receivables are steady enough to support ongoing borrowing. - You can keep good records and report on your invoices regularly. ### Reasons to think twice - Older or disputed invoices usually don't count toward what you can borrow. - Reporting takes work: expect to send aging reports and other updates regularly. - If customers pay late or not at all, you still owe the lender. - The lender will usually take a claim on your receivables, which can limit other financing. ## What lenders usually look at - The age and quality of your receivables, and who your customers are - How much of your revenue comes from a few customers - Your business's revenue, cash flow and credit history - How long your business has been operating - Existing liens or other financing secured by your receivables What they weigh, and how much, differs from one to the next and by product. No single number decides it. ## Documents you may be asked for - An accounts receivable aging report - An accounts payable aging report - Recent business bank statements - Financial statements and business tax returns - Sample invoices and customer contracts Each lender or funder tells you what it needs for your application, and you can upload documents in your 37Lend account. ## Also called - AR financing - Invoice financing - Receivables financing - Receivables-backed line of credit - Asset-based lending (a broader term) ## Compare with - [Invoice factoring](https://www.37lend.com/business-loans/invoice-factoring): Invoice factoring means selling unpaid invoices to a factor for cash now, instead of waiting for customers to pay. - [Line of credit](https://www.37lend.com/business-loans/line-of-credit): A business line of credit lets you draw funds as you need them, up to a limit, and pay interest only on what you use. - [Term loan](https://www.37lend.com/business-loans/term-loans): A term loan is a lump sum you repay in fixed installments over a set term, for a one-time cost with a clear payback. ## A/R financing questions ### What does A/R financing cost? Lenders and funders in our network quote invoice factoring and A/R financing at 15% to 40%, as of September 2026. That is pricing as quoted, not an APR and not an offer, and fees can add to it. What you're offered depends on your receivables, your credit profile, revenue and time in business, and on the lender that takes your application, so compare offers by total cost. ### Is accounts receivable financing a loan? Yes. You borrow against your unpaid invoices and repay the lender, while the invoices stay yours. That makes it different from invoice factoring, where you sell the invoices. ### Should I choose A/R financing or invoice factoring? A/R financing is a loan: you borrow against your invoices, keep them, and collect from customers yourself. Factoring is a sale: the factor buys the invoices and usually collects from your customers. A/R financing keeps your customer relationships in your hands, but usually needs more reporting and looks harder at your own business. ### How much can I borrow against my receivables? It depends on the lender and on your invoices. Lenders usually count only recent invoices from creditworthy customers and lend a share of their value, so what you can draw rises and falls with your receivables. The lender's agreement sets out how that amount is worked out. ### Will my customers know I use A/R financing? Usually not, because you keep collecting from customers as normal. Some lenders verify invoices with customers or ask that payments go to an account they control, so ask how each lender works. ## Start your application Tell us how much you need and what it's for, and one application is matched against 75+ lenders. Next you'll sign in or create an account on our secure page, then finish the application in about six minutes. Looking uses a soft credit inquiry, which doesn't affect your credit score. Start: https://www.37lend.com/login?next=%2Fapplications%2Fnew%3Fproduct%3Dar_financing Want to talk it through first? Book a call with a funding advisor: https://meetings-na2.hubspot.com/jpande ## More - [All nine kinds of business funding](https://www.37lend.com/business-loans) - [How it works](https://www.37lend.com/how-it-works) - [Small business funding FAQ](https://www.37lend.com/faq) ## Disclosures 37Lend is a funding marketplace, [not a lender](https://www.37lend.com/how-it-works#credit-checks). Loans and other financing are made by third-party lenders and funders in our network, and terms, rates and eligibility vary by lender, state and business profile. 1. The rate and pricing ranges shown are what lenders and funders in our network quoted as of September 2026. They are not APRs and not an offer. What you're offered depends on your credit profile, revenue and time in business, and on the lender or funder that takes your application. A line of credit is quoted per month, so its APR is higher. 2. Checking your options uses a soft inquiry that does not affect your credit score. A lender may run a hard inquiry only if you choose to accept its offer, and you are told and asked to agree first. 3. Applying is free, and so are getting offers and accepting one. Lenders may pay 37Lend a fee when financing is funded; the terms explain [what it costs](https://www.37lend.com/terms#what-it-costs). 4. Home equity lines of credit are offered by lenders in our network and are secured by your home, which you could lose if you don't repay. 5. A merchant cash advance, invoice factoring and a purchase of receivables are sales of future revenue or invoices, not loans. Their cost is usually quoted as a factor or discount rather than an interest rate, so compare offers by their total cost. 6. 37Lend is not affiliated with or endorsed by the U.S. Small Business Administration.