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American Receivable Review

Sean Peek
Sean Peek

American Receivable is an excellent factoring service with fast turnarounds, no monthly minimums and a long, reputable business history. It was founded in 1979 and has many stellar features and solid eligibility requirements. American Receivable has no commitment minimums and excellent customer support, making it the best factoring service for small businesses. 

American Receivable

American Receivable

The Verdict

American Receivable is an excellent service with fast turnarounds, no monthly minimums and great customer support. It is the best factoring service for small businesses.

View all of our factoring service reviews on our best picks page.

American Receivable Rates and Fees

American Receivable's low fees and high initial percent funded are a strong plus in its favor. At a minimum, it charges 0.8% of an invoice as its fee, though this rate varies depending on your circumstances and the terms of the contract you draw up with American Receivable. At the most, it funds up to 95% of your invoice upfront, which can greatly improve cash flow for your business. 

This service works with startups and companies with all types of credit. Like most factoring companies, American Receivable considers the credit of your customers more than your own credit, since your customers are the ones who will owe it money. 

American Receivable does not charge a setup or application fee. This saves you money and doesn't disrupt your cash flow, making American Receivable an excellent choice for small businesses with limited capital. The company also doesn't charge a termination fee if you stop factoring with American Receivable. 

Finally, American Receivable is a nonrecourse factoring company; if one of your customers does not pay American Receivable, you are not required to buy back the invoice you've sold to it. This reduces the risks associated with factoring and minimizes any negative impact with your business's cash flow.

Minimum Requirements

Unlike most factoring companies, American Receivable does not have strict prequalification requirements. The company doesn't consider how long your company has been in business, its revenue and credit score. Rather, the factoring service concerns itself with the creditworthiness of your customers, as they are the ones that pay the invoice. This can be a double-edged sword, as your ability to factor depends entirely on your customers, which may limit the invoices you can factor. 

One of the best things about American Receivable is that there is no invoice minimum. You do not have to submit a minimum dollar amount of invoices each month. American Receivable also doesn't have a minimum commitment – you don't have to contract with them for a specified amount of time. All of its services are based on what you need, when you need it.

Ease of Application

To get started with American Receivable, you can visit their website and submit an application online, or you can download a form and fax it to the company. 

It will typically get back to you within 24 hours. After you're approved and your account is set up, you usually receive funding within 24 hours of submitting an invoice.

Customer Services and Support

We reached out to American Receivable to test its customer service. The agents we spoke with were knowledgeable and professional. We didn't have any trouble getting in touch with them, and representatives answered our questions thoroughly. 

American Receivable offers a dedicated advisor to its clients. The advisor works with you every step of the way to answer any questions you might have. The company also offers phone support, live chat and email support. Additionally, you can connect with American Receivable via Facebook, LinkedIn and Blogger.

Standout Feature: High Delinquent Invoice Ceiling

One exceptional feature with American Receivable is that the company accepts invoices that are up to 120 days overdue. By contrast, the average in the factoring industry is between 60 and 90 days, so American Receivable's ceiling is especially helpful to businesses that need to sell invoices that have a higher delinquency. As delinquent accounts are what generally disrupt business cash flow, this element is important to think about when considering if American Receivable is the best factoring company for your business.


You can only factor up to $3 million a month with American Receivable, which is on the low end of the spectrum as far as a monthly ceiling. This amount may not be too low for what your business needs to factor each month, but if you anticipate growing, you may want to consider another factoring company. Still, it's important to consider how much you'll need to factor when deciding which invoice factoring company you should work with. 

American Receivable offers highly competitive rates, plus there are no setup or termination fees. Its eligibility requirements make it accessible to companies seeking to improve their cash flow by selling overdue accounts that are up to 120 days delinquent. It has a fast turnaround time, no commitment minimums, and it offers nonrecourse factoring. All of these features make American Receivable the best factoring service for small businesses. 

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Image Credit: wutwhanfoto / Getty Images
American Receivable

American Receivable

The Verdict

American Receivable is an excellent service with fast turnarounds, no monthly minimums and great customer support. It is the best factoring service for small businesses.

Sean Peek
Sean Peek Contributing Writer
Sean Peek has written more than 100 B2B-focused articles on various subjects including business technology, marketing and business finance. In addition to researching trends, reviewing products and writing articles that help small business owners, Sean runs a content marketing agency that creates high-quality editorial content for both B2B and B2C businesses.