SBA loan with AR as collateral?

June 23, 2025

by a searcher from Instituto Tecnológico de Buenos Aires in United States

Has anyone come across an SBA that accepts Accounts Receivable as collateral (without discounting them as if they were junk paper)? We’re exploring financing options to support our growth with reasonable terms (ideally through an SBA) but a recurring challenge has been that most lenders either don’t consider AR at all or apply extremely punitive discounts. I’d really appreciate any leads. Happy to share more context via DM. Thanks in advance!

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Great question. It depends on what type of SBA loan you are looking for. If you are doing an SBA 7A loan, they do not count A/R as part of the collateral pool for SBA 7A loans as they have to assume it will not be there if something happens with the loan. However, the SBA does have the CAP Line product where they can advance at normal Bank advance rates on current A/R. The challenge with this product is that few lenders offer it. But it is an option to get a more traditional revolving line of credit via the SBA loan programs. If you need A/R financing there are plenty of banks and non-bank lenders that offer asset based lending based off of A/R. They all will use advance rates which can vary a lot depending on the quality of the A/R, but most will advance up to 75% to 90% of the A/R value. Typically they are only going to finance current A/R and will cross-age. I would be happy to talk A/R financing options as we work with plenty of A/R lenders at any time. You can reach me here or directly at redacted

Reply by a searcher
from Emory University in Tucson, AZ, USA

Insuring the A/R - the application of which depends on if you are B2B, average invoice, the quality of accounts - can be a helpful lever for a line if credit for bankers that understand the benefits, are named on the policy, etc. There are some fintechs that are also reducing A/R days outstanding with term-like programs or marketplace early pay - again, depends on your industry, types of customers, etc. But reducing days outstanding can be immensely helpful.

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