Accounts Receivable Financing in San Jose
Up to 90% of your unpaid invoices, advanced as a revolving line.
- 24-hour funding on working capital files.
- 75+ lenders — banks, SBA, fintech.
- No upfront broker fees — paid by the lender at funding.
What it is and how it works in San Jose
Accounts receivable financing lets a San Jose B2B business borrow against unpaid invoices as a revolving line of credit. Unlike factoring, where you sell the invoice, AR financing keeps the receivable on your books and gives you a credit line of up to 90% of eligible AR. It's a sophisticated tool for companies with $1M+ in trailing revenue and creditworthy commercial customers.
A revolving credit facility collateralized by accounts receivable. The lender advances a percentage (typically 80-90%) of eligible invoices, with the line resizing as your AR grows or shrinks.
How AR Financing works
- 1
Lender reviews your AR aging, customer concentration, and dilution history.
- 2
Borrowing base certificate is established, typically 80-90% of invoices under 90 days.
- 3
Draw against the line as invoices are issued.
- 4
Customer payments come into a lockbox; line balance pays down automatically.
- 5
Line resizes weekly or monthly with your AR balance.
Benefits
More revenue means more borrowing capacity, automatically.
Treated as a loan, not a sale, typically 6%-15% APR.
Your customers continue to pay you (or a lockbox in your name).
Stop waiting 60-90 days for invoice payments.
Qualification requirements
- $1M+ in trailing 12-month revenue
- B2B sales to creditworthy commercial customers
- Receivables management systems in place (invoicing, aging reports)
- No single customer over 30-40% of AR (concentration limit)
Documents typically required
- 12-month AR aging detail
- Customer list with credit terms
- Last 2 years business tax returns
- Current P&L and balance sheet
How San Jose businesses use AR Financing
A West Valley staffing firm uses a $1.5M AR line to fund weekly payroll while waiting on net-45 invoice payments.
A Murray manufacturer scales a $3M AR facility as revenue grows from $8M to $14M annually.
A San Jose based government contractor uses an AR line to bridge 60-90 day federal payment cycles.
California's growing B2B service economy, including IT consulting, staffing, and government contracting, runs on long invoice cycles. AR financing turns that gap from a problem into capital.
