Funding

Accounts Receivable Financing 

Fast and simple from start to funding.

Accounts Receivable Financing Request

Accounts Receivable Financing Request
Please complete the fields below and a representative will reach out promptly to review your financing request. This is not an application for credit from Twelve31, Inc. Submitting this form will not affect your credit score. Twelve31 will use the information below for the purpose of prequalifying you for potential financing.
Business Entity Address
Business Entity Address
City
State/Province
Zip/Postal
Country
Please be as detailed as possible. For example, if purchasing a business please list your experience, available down payment, and what assets (i.e. real estate, equipment, etc.) are included in the purchase.

Acknowledgement

When you select “I agree” and click the “Submit” button below, you represent and warrant to Twelve31 and its successors and assigns (“Twelve31”) that you agree to the terms of the ESIGN Consent and Twelve31 Terms, Conditions and Privacy Policy and that you are authorized to enter into such agreements and to submit this loan inquiry. You acknowledge that Twelve31 may conduct a soft credit inquiry to the credit bureaus for the purpose of determining your eligibility for potential financing, which will not affect your credit score. If you pre-qualify for credit and you decide to move forward with the loan approval process, you will then authorize Twelve31 or the applicable third-party lender to submit a hard pull credit inquiry. You also understand and agree that completing this loan inquiry does not commit Twelve31 or any other lender to provide the requested financing but is a step in Twelve31’s referral process. You understand that your loan inquiry may be denied if the proposed lenders decline the opportunity to finance the requested loan. By submitting “I agree” you also authorize Twelve31 to add you to Twevle31’s marketing lists, including email marketing lists, for purposes of receiving future communications and announcements. You understand that Twelve31 is a broker and may be acting as an intermediary to facilitate the requested loan and you agree Twelve31 may refer and share your loan inquiry, data, and documents with such third-party lenders. You authorize Twelve31 and any third-party lenders to whom we may refer your loan inquiry to contact you at the telephone number and email address you provide to us. Twelve31 is not affiliated with and is not endorsing any third-party lender to whom we may refer your loan inquiry. You acknowledge and agree that you must do your own independent due diligence to determine if the proposed loan from the third-party lender is appropriate for you.

I agree with the above acknowledgement
FAQ

Accounts Receivable Financing FAQs

Accounts receivable financing is based on sales made by a company that have not yet been paid for by the customer. This includes things like unpaid purchase orders for products or unpaid invoices for services rendered. By financing these accounts receivables, businesses get faster access to capital and provides more predictable cash flow. 

Accounts receivable financing is a financing option that uses your company’s unpaid invoices as collateral for a lump sum of cash. Invoice financing typically comes with payment terms that give you 80% of the invoice value up front. Then, the factoring company takes over the process of collecting payment from your customers. Once the full amount is paid, you’ll receive the remaining invoice balance, minus a factoring fee that is paid to the company. 

The factoring fee is usually based on the net terms it takes for your customer to pay the invoice. It usually starts around 3% of the invoice total. However, you can also use other types of accounts receivables to get funding, including purchase orders and inventory. 

Because AR financing is based on tangible assets or debts owed to your company, you may find it easier to qualify than with traditional financing options like business loans. For instance, you’ll generally find more flexible requirements on things like credit and time in business. Even if your company started less than a year ago, you could still apply to qualify for accounts receivable financing.

There are four types of AR financing: factoring, inventory financing, purchase order financing, and single invoice factoring.

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