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American Receivable Review

By
Sean Peek
,
business.com writer
| Updated
Jun 25, 2019
Home
> Finance
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American Receivable is a factoring service with a long business history. It was founded in 1979 and has many advantageous features to startups and small businesses and reasonable eligibility requirements. Because it has a fast turnaround time for approval and funding, no monthly minimums and stellar customer support, American Receivable is the best factoring service for small businesses.

American Receivable

American Receivable

The Best Factoring Companies of 2019

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 our factoring service reviews on our best picks page.

American Receivable Rates and Fees

American Receivable's low fees and high advance rate are a strong plus. 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. It can fund up to 95% of your invoice upfront, which can greatly improve your business's cash flow.

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 will pay American Receivable.

American Receivable does not charge a startup fee or an application fee. This saves you money and doesn't disrupt your cash flow, making this factoring service an excellent choice if you're a small businesses with limited capital. The company also doesn't charge a termination fee if you longer factor your invoices with American Receivable.

It is a non-recourse factoring company, which means that if one of your customers does not pay American Receivable, you are not required to buy back the invoice.

Standout Feature: Extended Recourse Period

One exceptional feature is that American Receivable accepts invoices that are up to 120 days overdue. The average recourse period in the factoring industry is between 60 and 90 days. American Receivable's extended recourse period is worth considering if you're seeking a solution to meet your cash flow needs while accommodating a big customer.

Minimum Requirements

Unlike most factoring companies, American Receivable does not have strict prequalification requirements. It doesn't consider how long you've been in business, your revenue or your credit score. Rather, it evaluates the creditworthiness of your customers as they are the ones who pay the invoice. This can be a double-edged sword, as your ability to factor depends entirely on your customers, which may limit which invoices – or even if – you can factor with this service.

One of the best things about American Receivable is that there is no monthly minimum – you do not have to submit a certain dollar amount each month. The service also doesn't hold you to a time commitment, meaning that you are not required to contract with them for a specific amount of time. All of its factoring services are based on which customers and invoices you need help with.

Ease of Application

To get started with American Receivable, you can go to their website, fill out an application form, providing personal info, as well as info relating to your business. You can also download an application form and fax it to the company. After American Receivable has your application, it will notify you within 24 hours if you've been approved or not.

If you've been approved and after your account is set up, you typically receive funding within 24 hours after of submitting an invoice.

Customer Services and Support

We reached out to American Receivable to test its customer service. We were quickly connected with a representative who was knowledgeable and professional.

American Receivable provides a dedicated advisor to your company. This advisor works with you every step of the way. It also offers telephone support, live chat and email support. Additionally, you can connect with American Receivable via Facebook, LinkedIn and Blogger.

Limitations

You can only factor up to $3 million each month with American Receivable, which is on the low end. This amount may not be too low for your business, but if you anticipate your business expanding, you may want to consider another factoring company.

American Receivable offers highly competitive rates, and it does not charge application or startup fees. Further, its eligibility requirements are accessible to companies looking to improve their cash flow by selling accounts that have extended payment terms, which can be helpful to struggling businesses. It has a fast turnaround time, no commitment minimums and offers non-recourse factoring. All of these features make American Receivable the best factoring service for small businesses.

Editor's note: Looking for the right factoring service for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

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American Receivable

American Receivable

The Best Factoring Companies of 2019

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
Sean Peek is a writer, small business owner and SEO specialist. He began his career in digital marketing as a freelance writer in 2013 and has over five years of experience in the B2B space. You can learn more at lightningmediapartners.com.