AR stands for “Accounts Receivable” in AR Financing. It refers to the outstanding invoices or money owed to a company by its customers for goods or services provided on creditfor a portion of their future credit card or other receivables at a discounted price. We’ll send the funds to your business bank account if your application is approved

Accounts Receivable (AR) Financing, also known as Invoice Financing, is a type of business financing where a company uses its outstanding invoices as collateral to obtain a loan or line of credit from a lender. It provides businesses with immediate cash flow by advancing funds against their unpaid invoices. accounts receivable, such as credit/debit card sales and invoices. The alternative funder will review credit card processing statements, business bank account statements, invoices, and other important documents after they apply.

In Accounts Receivable Financing, a business sells its unpaid invoices to a CAPIFUND at a discount. CAPIFUND then advances a percentage of the invoice value (typically 70-90%) to the business upfront. Once the customer pays the invoice, CAPIFUND deducts a fee or discount and remits the remaining balance to the business. This financing option helps businesses improve cash flow and manage working capital effectively by accelerating the receipt of funds tied up in accounts receivable. companies consider your personal or business credit, but it’s not the only consideration. The majority of alternative small business funders evaluate your business’s overall performance by evaluating your revenue, time in business, accounts receivable, and credit history.