Culver Business Finance

AR Financing

Financing Based on Your Customers’ Credit

ST-ar_financeUnlike conventional working capital loans or bank lines, Culver Capital’s Accounts Receivable Financing programs focus strictly on your customers ability to pay, NOT your credit or financial history–whether you are a start-up, early stage, newer business or a mature business.  Historical losses or negative net worth are not an issue.

Account Receivable financing leverages your customers’ good credit to improve your cash flow and free up your working capital.

AR Financing generally has more financing flexibility than any other method.  The quality of your invoices and the creditworthiness of your clients is the primary consideration–rather than your balance sheet.

No credit limit
There is no credit limit, we fund as many of creditworthy commercial accounts as you can ship to and invoice.

Fast funding
Turn invoices into immediate cash for business operations.  Initial funding normally happens in just 5-10 days.  Thereafter, as fast as 24 hours.

No new debt on your balance sheet
Factoring is not a loan, no balance sheet debt is incurred.

How Accounts Receivable Financing Works

The initial account set-up takes from 5-10 days, thereafter we can provide from 75% to 90% of the face value of new invoices in as little as 24 hours. (in part determined by the creditworthiness of your clients).  In essence, we “buy” the invoices, discounted by the (10-25% reserve amount), from you.  We then very closely monitor that account for payment.

When your customer pays us for the invoice in 30, 60 or even 90 days, we will pay the balance of the face amount to you–less a small service fee based on the number of days required to collect on that invoice.  (Note: You may be required to “buy back” invoices that remain unpaid for more than 90 days. (Our A/R programs are for creditworthy customers who may pay “slowly,” not for those who don’t pay at all)

Is Accounts Receivable Financing A Good Fit for Your Company?

  • “B2B” sales only, no business to consumer transactions considered.
  • Business must be selling on “terms.”
  • Business must be billing in arrears. (no pre-funding/pre-billing)
  • Monthly sales of $20,000.month or $250,000 year.
  • Accounts should be spread over a mix of customers. (i.e. no single customer accounts)
  • Business should be capable of generating its own A/R and A/P aging reports.
  • Individual invoices should be for $350 or more.