AR Financing for California companies
California's economy is driven by the nation's largest economy, from LA ports and apparel to Silicon Valley tech and Central Valley agriculture. Companies in these sectors frequently wait 30 to 90 days for payment, and accounts receivable financing converts those waiting periods into immediate working capital.
Accounts receivable (AR) financing gives your business an advance against invoices you've already issued to commercial or government customers. Instead of waiting 30, 60 or 90 days for payment, you receive most of the invoice value now and the balance — minus a small fee — when your customer pays.
Because approval is based mainly on the credit strength of your customers rather than your own balance sheet, AR financing is available to young companies, fast-growing companies and businesses that don't fit a bank's lending box.
Who qualifies in California
- You sell to other businesses or government agencies (B2B / B2G)
- Invoices are for completed work or delivered goods
- Customers have reasonable commercial credit
- No unresolved tax liens that prevent a first-position UCC filing
What California businesses need to apply
Applying takes about ten minutes. Most California companies already have everything on this list, and nothing here affects your personal credit score.
- An accounts receivable aging report
- A sample invoice and the matching purchase order or contract
- A list of the customers you want to finance
- Articles of incorporation and your EIN
- A voided business check and photo ID for each owner
