Accounts Receivable
Financing

Accounts Receivable Funding turns invoices into cash.

In B2B sales, the seller of products or services provides payment terms to its customers by invoicing them for payment at a future point in time-30 days, 60 days, or perhaps 90 days. Accounts Receivable Funding turns invoices into cash and significantly reduces the gap in the time period between the sale, and the receipt of payment.

How it works

Using an ABL format, Worthy Lending will periodically get copies of invoices from its borrower along with a current accounts receivable aging report.

Generally, Worthy Lending will lend up to 70%-80% of the total eligible net value of all invoices not older than 90 days. The account debtors (customers) responsible for paying these bills must be credit worthy, and numerous (not usually just one single customer).

Borrowers, upon having ample additional/new receivables as collateral, can continue to use the availability as a revolving line.

Receivables based ABL finance should not be confused with Factoring in which the borrower actually “sells” the invoices to the lender (factor).

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