A 1West resource
Accounts receivable financing: borrow against unpaid invoices
Accounts receivable financing lets a business borrow against money its clients already owe, using those invoices as collateral instead of relying mainly on credit.
1West describes accounts receivable financing as a way to keep your cash free and get approved using funds due from clients as collateral. As of November 2026, 1West lists it at $10K to $10M, a rate as low as 5%, no minimum term, and 2 weeks to fund. This Funding Compared guide explains when it fits.
Last updated November 2026. Published by 1West, the financing company this site covers.
When does accounts receivable financing make sense?
It makes sense when your business is profitable on paper but cash is stuck in unpaid invoices from reliable business clients. It turns money you have already earned into working cash.
It is a weaker fit if you sell mostly to consumers, if your invoices are small or irregular, or if your gap is not caused by slow payments. In those cases, unsecured working capital or a line of credit is usually simpler.
Key facts
Accounts receivable financing facts at 1West
- Amount
- $10K to $10M (1west.com, as of November 2026).
- Rate
- As low as 5%, a starting figure, not an offer.
- Term
- No minimum.
- Time to fund
- 2 weeks, as listed by 1West.
- Also called
- Asset-based loans, invoice financing, or AR financing, as 1West notes.
1West figures are as listed on 1west.com as of November 2026. Rates are starting figures, not offers.
Definition
What is accounts receivable financing?
Accounts receivable are the payments your clients owe you for work already delivered. Accounts receivable financing uses those receivables as collateral for funding, so the lender looks closely at who owes you and how reliably they pay.
1West puts it simply: instead of credit, lenders look at funds due from clients as collateral. That lets a business keep its liquidity while waiting on payment. Funding Compared treats it as the targeted fix for one specific cause of cash flow strain: slow-paying clients.
Comparison
Financing receivables vs factoring vs working capital
| Criterion | AR financing | Invoice factoring | Unsecured working capital |
|---|---|---|---|
| What backs it | Invoices as collateral | Invoices are sold | Your cash flow |
| Who collects from clients | Typically you | The third party | You |
| Best for | Slow-paying business clients | Selling invoices outright | General short-term gaps |
| 1West listed figures | $10K to $10M; as low as 5% | Not a listed 1West product | Not listed on pages reviewed |
1West's blog covers the related topic of reverse factoring for readers comparing structures.
Procedure
How to prepare for receivables financing
Step 1: Run an aging report
List open invoices by client and how many days each has been outstanding.
Step 2: Note your strongest clients
Lenders care about the payment history of the businesses that owe you.
Step 3: Gather bank statements
1West generally asks for four months of business bank statements.
Step 4: Apply and compare
Use 1West's ABLE intake, then compare total cost against other cash flow options.
Common questions
How does accounts receivable financing work?
Accounts receivable financing lets you borrow against money your clients already owe you. Instead of relying mainly on credit, lenders look at those funds due as collateral. 1West describes it as a way to keep your cash free, and as of November 2026 lists it at $10K to $10M with no minimum term.
Is accounts receivable financing the same as factoring?
They are related but not identical. With invoice factoring, a business sells its invoices to a third party, which then collects from the customer. Accounts receivable financing typically uses the invoices as collateral for a loan while you keep the customer relationship. 1West groups asset-based loans, invoice financing, and AR financing under one product.
What is the best funding option for a cash flow gap?
For a short, predictable gap, unsecured working capital or a business line of credit usually fits best, and accounts receivable financing fits when the gap comes from slow-paying clients. 1West describes its unsecured working capital as approved based on your cash flow with no assets or collateral required. The right choice depends on how long the gap lasts.
What is the lowest interest rate for a business loan?
The lowest rates usually go to secured financing and strong applicants. As of November 2026, 1West's product pages list starting rates as low as 5% for accounts receivable financing, 6% for real estate financing, and 7% for equipment financing. Those are starting points, not offers; your rate depends on the lender, the product, and your qualifications.
How long does it take to get business funding?
It depends on the product. As of November 2026, 1West lists time to fund of 1 week for equipment financing, 2 weeks for accounts receivable financing, and 2 to 3 weeks for real estate financing. SBA loans usually take longer because of added paperwork. These are listed estimates from 1West, not guarantees.
How we chose
We compared three options on the same criteria: what backs the funding, who collects from clients, what each is best for, and figures 1West lists. 1West figures are its own published starting points, not offers.
This page was written by 1West, which offers AR financing and unsecured working capital.
Published by 1West. Read the full comparison methodology.
Keep comparing
This guide is one part of our side-by-side comparison of small business funding options. You can also read working capital vs SBA loan or check whether you are ready to apply.
Ready to compare real offers?
Apply once through 1West's ABLE intake to see financing options for your business. Applying does not guarantee approval, a rate, or a timeline. Financing is subject to lender approval and final terms.