# Purchase of future receivables > A purchase of receivables is not a loan: a funder buys a portion of your future receivables at a discount and collects them. Source: https://www.37lend.com/business-loans/purchase-of-receivables Last updated: September 28, 2026 Funders in our network quote merchant cash advances and purchases of receivables at 20% to 60%, as of September 2026. The funder pays you now and collects its portion as your receivables come in, often through regular debits from your bank account. It works much like a merchant cash advance and can cost much more than a loan, so read the agreement closely and compare total cost with every other offer. Because it's a sale of future revenue and not a loan, the funder's cost is the discount it buys at, often stated as a factor rather than an interest rate, and rules written for loans may not apply. Compare offers by total cost: what you receive now against everything that will be collected. ## Key facts - Is it a loan? No. It is a sale of part of your future receivables, so compare offers by total cost. - Kind of funding: advances against sales and invoices. - 20% to 60%: pricing as quoted by funders in our network for merchant cash advances and purchases of receivables, as of September 2026. Not an APR and not an offer. 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 purchase of receivables works How it's repaid: A funder buys a portion of your future receivables and collects that portion as they come in. 1. A funder agrees to buy a portion of your future receivables, up to a set total, and pays you a smaller amount now. The difference is the funder's cost. 2. The money arrives in your business bank account. 3. The funder collects its portion as your receivables come in, often through daily or weekly debits from your bank account. 4. If your revenue falls, the agreement should say how collections can be adjusted to match it. Ask before you sign. 5. Collection ends once the funder has received the agreed total. ## When it fits, and when it doesn't ### Where it fits - Your business has consistent, predictable revenue. - You need working capital, and other options don't fit. - You've read how collections work, and how they adjust if revenue drops. - You've compared the total cost with loan offers. ### Reasons to think twice - It can cost much more than a loan. Compare the total that will be collected, not just the stated factor or discount. - Frequent debits from your bank account can strain your cash flow. - Paying early may not reduce the total owed. - Taking more than one at a time can become hard to manage, and many agreements forbid it. ## What funders usually look at - Your revenue, and how consistent it is - Recent bank activity, including overdrafts or returned payments - How long your business has been operating - Any advances or financing you already have - Credit history, which some funders weigh less than your revenue 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 - Recent business bank statements - Card processing statements, if you take cards - Details of any other advances or financing you have - Basic details about the business and its owners Each lender or funder tells you what it needs for your application, and you can upload documents in your 37Lend account. ## Also called - Future receivables purchase - Receivables purchase agreement - Revenue purchase agreement - Future revenue financing ## Compare with - [Merchant cash advance](https://www.37lend.com/business-loans/merchant-cash-advance): A merchant cash advance is not a loan: a funder buys part of your future card or bank sales and collects a share of them. - [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. ## Purchase of receivables questions ### What does a purchase of receivables cost? Funders in our network quote merchant cash advances and purchases of receivables at 20% to 60%, as of September 2026. That is pricing as funders quote it, not an interest rate, an APR or an offer: a purchase of receivables is a sale, not a loan, and its cost is often stated as a factor or discount. What you're offered depends on your revenue, time in business and credit profile, and on the funder, so compare every offer by total cost: what you receive now against everything that will be collected. ### Is a purchase of future receivables a loan? No. It's a sale: a funder buys a portion of your future receivables at a discount and collects that portion as they come in. Because it isn't a loan, its cost is usually stated as a factor or discount rather than an interest rate, and some rules that apply to loans may not apply. Compare it with loan offers by total cost. ### How is a purchase of receivables different from a merchant cash advance? They are closely related, and many merchant cash advances are written as purchases of future receivables. The practical difference is usually how collection works: an advance tied to card sales may take a share of each day's card sales, while a purchase of receivables is often collected by regular debits from your bank account. Read each agreement for how collection and adjustments work. ### How is it different from invoice factoring? Factoring sells invoices you've already issued, for work that's done, and the factor collects from your customers. A purchase of future receivables sells revenue you haven't earned yet, and the funder collects from your business. ### What happens if my revenue drops? It depends on the agreement. Many say collections can be adjusted to reflect your actual receivables, often only if you ask and show records. Read that section before you sign, and ask the funder how an adjustment works in practice. ## 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%3Dpurchase_of_receivables 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.