Accounts Receivable Financing
We can help you navigate AR financing. Cerebro revolutionizes data-driven processes that help companies access favorable terms for their working capital needs.
lenders on the network
committed capital proposals
*Accessing the market timeline is dependent on data room population.
There are a variety of lenders, both bank and non-bank, that provide AR financing for the purposes of working capital. Typical receivables financing terms include:
Favorable Interest Rates
What criteria do lenders consider when providing a working capital loan collateralized by receivables 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.
AR Criteria Lenders Consider
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?
If you answered yes to these questions, then you are ready to start evaluating your debt financing options for your working capital needs. Find out how we can help you get started.
Common Questions Regarding AR 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.