AR Line-Invoice Factoring

AR Line-Invoice Factoring

Financing invoices for services and products that have been completed or delivered. The factor advances money to the business as a form of a loan or purchase that is collateralized by a security interest in the company’s accounts receivables. Advance amounts are determined as a percentage of the invoices full amount and associated risk. The advance rate is usually 70% to 99% of the total face value of the invoices.