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Celtic Capital Corporation - Asset-Based Financing From $500,000 to $8 Million

What’s the Difference Between Accounts Receivable Financing and Factoring?

Many people confuse accounts receivable financing with factoring, but there are key differences. Factoring involves selling your accounts receivable to a lender at a discounted price. In contrast, accounts receivable financing through asset-based lending allows you to borrow money based on the value of your receivables while retaining ownership and control over them. This means you maintain control of your customer relationships and don’t need to sell off your invoices to access cash.