Your invoices are already money. Stop waiting 30, 60, 90 days to use it.
An advance against the B2B invoices you’ve already earned, on a borrowing base that grows as you bill — so funding scales with sales instead of waiting on your customers to pay.
What is receivables financing?
Receivables financing is asset-based lending that advances cash against a business’s outstanding B2B invoices, with availability sized to a borrowing base of eligible receivables that grows as you bill. Rather than borrowing a fixed lump sum, you draw against the value of what your customers already owe you, and capacity moves with your sales.
It’s built for companies that sell on terms and feel the gap between doing the work and getting paid — you’ve covered the cost of production, but the cash is tied up in a 30-, 60-, or 90-day invoice. Receivables financing turns those receivables into working capital you can put back to work now.
How receivables financing works
Once approved, we establish a line against your eligible receivables and advance funds as you invoice. The receivables serve as the collateral, the borrowing base is reviewed on a regular cycle, and availability adjusts as your invoices age and turn.
A line that grows with sales
Availability is tied to your eligible receivables, so the more you bill creditworthy customers, the more capacity the facility can support.
Underwritten on your customers
Approval weighs the creditworthiness of the customers who owe you and the quality of your receivables, so your own credit file isn’t the whole story.
You keep the relationship
Unlike selling invoices outright, a receivables line is borrowing against them — a structure designed to keep you in control of your customer relationships.
What counts as eligible
Not every invoice qualifies, and knowing the lines up front saves time in underwriting. As a general guide, the cleanest collateral is current, verifiable, arm’s-length, and owed by creditworthy domestic business or government customers.
Age matters
Current invoices are the strongest collateral; receivables that have aged well past terms are typically excluded from the borrowing base.
Arm’s-length
Invoices to related parties are generally restricted, since the collateral works best when it reflects independent, creditworthy customers.
Government & foreign
Federal-government receivables follow Assignment of Claims requirements, and foreign-customer invoices receive added scrutiny — both can still be worked through in underwriting.
The work is done. The cash shouldn’t be the slow part.
Tell us who you bill and how your terms run, and we’ll structure a receivables line around your sales cycle.
Receivables financing or invoice factoring?
They solve the same problem — cash tied up in unpaid invoices — but differently. Receivables financing is a line where you borrow against your invoices and keep ownership of the relationship; invoice factoring sells the invoices to a factor that takes over collection. Which one fits depends on how your customers pay, how hands-on you want to be on collections, and the cost trade-off. We’ll walk you through both rather than push one.
Who is receivables financing for?
It fits B2B companies that sell on terms to creditworthy customers and need their cash to move at the speed of their sales — distributors, manufacturers, staffing firms, service businesses, and anyone whose growth is gated by slow-paying invoices. Strong receivables and disciplined billing matter more here than a perfect credit score.
Receivables financing is one part of our wider asset-based lending family, alongside inventory, equipment, and purchase order financing; the full menu lives on our solutions hub. Capital Source has funded businesses since 2015, manages over $500 million in active funding programs, and lends in 46 states (we do not currently fund businesses in California, Connecticut, Utah, or Virginia). Curious how we evaluate a deal? Read about how we operate.
Frequently asked questions
Is my own credit the deciding factor for receivables financing?
Not on its own. Receivables financing weighs the creditworthiness of the customers who owe you and the quality of your invoices heavily, so a strong receivables book can carry a deal even when your personal credit is imperfect. It’s one input, not a gate.
How is receivables financing different from invoice factoring?
Receivables financing is a line where you borrow against your invoices and keep ownership of the customer relationship. Invoice factoring sells the invoices to a factor that takes over collection. Both turn invoices into cash; the right fit depends on cost and how hands-on you want to be.
Which invoices are eligible?
Generally, current and verifiable invoices owed by creditworthy, arm’s-length business or government customers. Heavily aged, related-party, and some foreign or government receivables face restrictions, though many can be worked through in underwriting.
Does my availability change over time?
Yes. Because the line is tied to your eligible receivables, availability grows as you bill creditworthy customers and adjusts as invoices age and get paid. The borrowing base is reviewed on a regular cycle.
Turn 90 days of patience into capital you can use today.
Tell us where your business is headed and we’ll structure capital around the receivables that get it there.