Accounts Receivable Financing
We can help you navigate AR financing
Cerebro revolutionizes data-driven processes that help companies access favorable accounts receivables terms for their working capital needs.
Accounts Receivable Financing Options for Your Business
There are a variety of lenders, both bank and non-bank, that provide accounts receivable financing, AR financing, for the purposes of working capital. Typical receivables financing terms include:
- Loan Amounts: $1 million to $100 million
- Typical Term Length: 1 to 5 years
- No EBITDA Requirement
- Covenants: few to none
- Industry Agnostic
What criteria do lenders consider when providing AR financing?
Cerebro can help you access both commercial bank financing and non-bank financing depending on the specifics of your accounts receivables. Generally speaking, non-bank lenders are considered more flexible than commercial banks but they cost more in order to unlock the benefits of that flexibility. Typical Criteria Lenders Consider:
- B2B & B2G receivables
- Receivables aged less than 120 days
- Customer concentrations up to 50%
- Billing in arrears, may consider milestone billing or pre-billing
- International receivables (with credit insurance)
The Cerebro Solution
Team of Experts
Ask Yourself These Questions:
Are you looking to bridge the gap between when you pay expenses and when you receive revenue from your customers?
Do you currently have a balance of over $750,000 in accounts receivables?
Do you invoice the bulk of your customers & offer payments terms within 90 days?
Common Questions Regarding Accounts Receivable Financing
Is positive cash flow needed?
Likely, no. Non bank lenders are mostly concerned with collateral value more than cash flow. This means that AR financing with a non-bank lenders can many times offer higher loan amounts than a Bank Line of Credit.
Do lenders take a senior secured position on the assets?
Yes. Lenders file a UCC-1 so they are in the first lien position on almost all assets except Real Estate. Lenders also require non-real estate lenders to subordinate to them at a lower lien position.
What are the audit requirements?
Lenders may or may not require an on-site audit depending on the quality of the financial reporting and accounts receivables. Most non-bank lenders will be more flexible on this than commercial banks.
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