Managing cash flow remains a critical challenge for Arkansas businesses extending net payment terms to customers. With 496,747 employees working for small businesses across the state—representing 47.1% of Arkansas employment—the gap between invoicing and payment collection creates significant operational strain.
Arkansas companies routinely wait 30, 60, or even 90 days for customer payments while facing immediate expenses for payroll, inventory, and growth initiatives. This cash flow disconnect particularly impacts manufacturers, distributors, and B2B service providers who extend credit terms to maintain competitive advantage but struggle with the resulting working capital constraints.
Resolve Pay has revolutionized accounts receivable funding by combining instant credit decisions, non-recourse advances, and automated collections into a single platform. Unlike traditional factoring companies that can take weeks for approval, Resolve's proprietary AI evaluates thousands of data points to deliver credit decisions within 24 hours, advancing up to 100% of approved invoice values.
The platform's AI-driven underwriting delivers deeper credit insights than traditional bureaus. Arkansas businesses receive funds within 24 hours of invoice approval while customers enjoy flexible payment terms. The automated reconciliation system handles any invoice structure—net terms, COD, or due upon receipt—ensuring accuracy across your entire receivables lifecycle.
Fees range from 2.61% to 3.5% on 30-day terms with no hidden charges or long-term contracts
Arkansas banks offer revolving credit lines that provide flexible access to working capital, though approval processes typically require extensive documentation and strong credit histories. These facilities work best for established businesses with predictable cash flow patterns and existing banking relationships.
Several regional and national banks serve Arkansas businesses with competitive credit facilities. Interest rates vary based on creditworthiness and are commonly quoted as Prime + a margin (e.g., +2–6%). Approval timelines span 2-8 weeks with funding availability dependent on underwriting complexity.
Traditional factoring provides immediate cash by purchasing invoices outright, though fees typically range from 1-5% of invoice value. While factoring offers quick funding, APRs can be as high as 79% when annualized, making it expensive for regular use.
Invoice factoring can create dependency cycles where businesses rely on advances for operations, potentially masking profitability issues. The loss of customer relationship control when third parties handle collections can damage long-term business relationships. Additionally, factoring companies often require whole-ledger commitments, forcing businesses to factor all invoices rather than selectively choosing which to finance.
Asset-based lenders provide credit facilities secured by accounts receivable, inventory, and equipment. These arrangements offer higher advance rates than traditional loans while maintaining more flexibility than factoring agreements.
ABL facilities grow with your business since borrowing capacity increases with receivables and inventory. The revolving structure allows drawing funds as needed while only paying interest on outstanding balances. Companies maintain customer relationships and collections control unlike factoring arrangements.
Receivables finance has become a strategic pillar for managing liquidity in modern supply chains. These programs allow Arkansas businesses to receive early payment from financial institutions while buyers pay on standard terms.
Supply chain finance works best with large, creditworthy buyers who can establish programs with financial partners. Arkansas suppliers benefit from their customers' superior credit ratings, accessing lower-cost financing than available independently.
The shift from traditional supply chain finance to selective receivables financing allows businesses to strategically choose which invoices to finance based on cash flow needs. This flexibility prevents over-dependence on financing while optimizing working capital efficiency.
SBA loans provide government-backed financing with favorable terms, though approval processes can extend several months. According to SBA Office of Advocacy, Arkansas banks originated about $3.2B in small-business loans under $1 million (across all lenders), not specifically SBA-guaranteed loans, demonstrating strong small business lending activity in the state.
Standard SBA loans require 30-90 days for approval and funding. The extensive documentation requirements and multiple approval levels make SBA loans unsuitable for immediate cash flow needs, though they provide excellent long-term financing options.
Understanding the mechanics of AR financing helps Arkansas businesses evaluate options effectively. The process transforms unpaid invoices into immediate working capital through a structured advance and collection system.
Resolve Pay stands apart through its comprehensive platform addressing every aspect of B2B credit and payments. While traditional factoring companies focus solely on purchasing invoices, Resolve provides an integrated solution combining credit assessment, payment processing, and automated collections.
Beyond traditional AR financing, Arkansas businesses can explore complementary funding options that work alongside or instead of invoice-based solutions.
NCRI predicts that businesses will increasingly adopt automation tools for AR management, with digital platforms offering faster approval and funding than traditional sources. These fintech solutions evaluate creditworthiness using alternative data, providing options for businesses with limited credit history.
Arkansas businesses can pursue federal and state grants that don't require repayment. While grants involve competitive application processes, they provide non-dilutive capital for specific purposes like research, workforce development, or infrastructure improvements.
Making informed decisions about AR financing requires understanding potential risks and how to mitigate them effectively.
Over-reliance on factoring can mask underlying business problems like declining profitability or operational inefficiencies. 63% of agencies report unpredictable cash flow with 97% dealing with late payments, creating chronic financing needs rather than occasional usage.
Third-party collections can strain customer relationships, particularly if the factor uses aggressive tactics. Maintaining direct customer communication through white-label solutions like Resolve's payment portal preserves these vital business relationships.
The accounts receivable financing landscape continues evolving with technology and changing business needs driving innovation.
Predictive analytics and self-service portals can potentially reduce operational costs while improving accuracy. AI-driven platforms process applications in hours rather than weeks, democratizing access to working capital for smaller businesses.
Some pilots and platforms are exploring blockchain for invoice verification and multi-funder models. This technology could reduce fraud risk while increasing transparency throughout the financing process.
The AR financing market continues to expand, driven by increasing B2B transaction volumes and working capital demands. Market analysis suggests continued growth opportunities for both established players and innovative fintech platforms serving the SME segment.
Most AR financing providers offer advance rates between 70-97% of invoice value, depending on customer creditworthiness and invoice quality. Resolve Pay advances up to 100% on approved invoices, providing maximum cash flow acceleration. The advance percentage varies based on your customer's payment history, credit score, and industry risk factors. Higher-risk invoices may qualify for 50-75% advances, while prime customers can achieve maximum advance rates.
Funding speed varies significantly by provider type. Resolve Pay typically approves and funds invoices within 24 hours after submission. Traditional factoring companies may take 2-5 business days for initial setup and 24-48 hours for subsequent invoices. Bank-based AR lines require 2-8 weeks for initial approval but provide same-day draws once established. The fastest option for immediate needs remains modern platforms using AI-powered underwriting for instant decisions.
Traditional factoring fees range from 1-5% of invoice value with APRs potentially as high as 79% when annualized. Resolve Pay charges 2.61-3.5% for 30-day terms with transparent, flat-rate pricing. Consider a $100,000 invoice: traditional factoring might cost $3,000-5,000 with a 90% advance, while Resolve would charge $2,610-3,500 for a 100% advance. The higher advance rate and non-recourse terms make Resolve more cost-effective for most Arkansas businesses.
Yes, because AR financing evaluates your customers' creditworthiness rather than your business credit. Resolve's free business credit check requires only your customer's name and address, delivering results within 24 hours. Startups with creditworthy B2B customers can access financing even without established business credit. The key requirement is having legitimate invoices from commercial customers with good payment histories.
AR financing helps retain business equity since it's asset-based rather than debt. When you sell invoices, they're removed from accounts receivable and converted to cash, improving liquidity ratios and cash flow metrics. Non-recourse financing like Resolve Pay doesn't create liabilities since there's no repayment obligation. This improves debt-to-equity ratios compared to traditional loans while accelerating cash conversion cycles. Your DSO (days sales outstanding) decreases, demonstrating improved collections efficiency to stakeholders.
Manufacturing, distribution, and B2B services see the greatest benefits from AR financing. Arkansas manufacturers use it to bridge production-to-payment gaps while maintaining lean operations. Construction suppliers manage seasonal fluctuations and project-based cash flow effectively. Professional services firms eliminate collection headaches while focusing on client delivery. Resolve's platform serves businesses across industries, with particular strength in companies extending 30-60 day payment terms to maintain competitive advantage. Any Arkansas business invoicing other businesses can potentially benefit from AR financing solutions.
This post is to be used for informational purposes only and does not constitute formal legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Resolve assumes no liability for actions taken in reliance upon the information contained herein.