A/R Funding Without Notifying Your Customers.
A revolving credit facility secured against your accounts receivable — without a Notice of Assignment. You manage your own collections. Your customers never know the facility exists. All the working capital. None of the disclosure.
- $900M+ Multi-product funded
- Human Decisions — Not Bots
- 600+businesses funded
- $900M+invoices purchased
- 97%fund again
AR Funding
AR Funding is structured around your A/R profile.
AR funding facilities are custom-built around your receivables aging, customer concentration, and confidentiality requirements. Speak with a specialist first.
No customer notification required
Revolving line — draw and repay as needed
You retain collection relationship with customers
Underwritten on your receivables, not your balance sheet
How AR Funding Works
Capital Against Your Receivables Confidentially
AR funding is a revolving credit facility where Sigma advances against your accounts receivable without notifying your customers. You submit your A/R aging periodically, draw against the available borrowing base, and repay as your customers pay you. Your collections process stays entirely in-house.
Confidentiality
No Notice of Assignment. No customer contact.
Unlike standard invoice factoring, AR funding does not require a Notice of Assignment to your customers. Sigma does not contact your customers. You maintain the full collection relationship — your customers simply pay you as normal, and you repay Sigma from your collections.
Structure
Revolving line — draw and repay at will
AR funding is a revolving facility, not a per-invoice advance. You submit your A/R aging on a scheduled basis, Sigma calculates your available borrowing base, and you draw up to that amount. As customers pay, your outstanding balance reduces and new availability opens up.
Borrowing Base
Availability follows the quality of your A/R
Sigma calculates your borrowing base from eligible receivables. Aging or ineligible receivables reduce availability, and new invoices to creditworthy customers add to it. The facility grows as your sales grow.
Balance Sheet
Off-balance-sheet or on — your choice
Depending on how the AR funding facility is structured — as a true sale or as a secured borrowing — it may or may not appear on your balance sheet as debt. We structure the facility to match your accounting and reporting requirements. Your CFO and auditors are consulted before closing.
Know the Difference
AR Funding vs. Invoice Factoring
| AR Funding | Invoice Factoring | |
|---|---|---|
| Customer Notification | None — fully confidential. Customers never know. | Notice of Assignment sent — standard industry practice |
| Collections | You manage your own collections entirely | Sigma manages collections professionally on your behalf |
| Structure | Revolving facility — draw against borrowing base | Per-invoice advance — sell individual receivables |
| Approval Speed | Facility structured in days; draws based on BBC submission | Set up in 24–48 hours, then invoices funded the same day |
| Customer Non-Payment | Recourse: a receivable that isn't paid comes out of your borrowing base | Recourse, with optional credit insurance against a customer who doesn't pay |
| Best For | Businesses that need confidentiality with customers or want to self-manage collections | Businesses that want speed, simplicity, and collections handled for them |
AR Funding Is Right For You If
You Need Capital Without Disclosure
Your customer relationships require confidentiality
Enterprise or government customers that would react negatively to a Notice of Assignment. Professional services clients with long-standing relationships. Industries where NOA carries stigma.
You want to retain control of collections
You have a dedicated A/R team, an established collections process, and a track record of getting customers to pay on time. You don't want or need Sigma managing that relationship.
You need a revolving facility, not invoice-by-invoice funding
Your cash flow needs are ongoing and variable — not tied to specific invoices. A revolving line lets you draw what you need, when you need it, up to your borrowing base.
Your bank line doesn't cover your A/R cycle
AR funding can supplement an existing bank line or replace it entirely. It advances specifically against your receivables — giving you higher availability against the asset that actually drives your cash flow.
Common Questions
AR Funding FAQ
How do I draw against the facility?
You submit an A/R aging report to Sigma on a scheduled basis — typically weekly or monthly. We calculate your eligible receivables and your available borrowing base. You draw against that base via wire request. As you collect from your customers and repay the outstanding balance, new availability opens up.
What makes a receivable "eligible"?
Eligible receivables are generally: invoiced to creditworthy B2B customers, not past due beyond a defined threshold (typically 90 days), not in dispute, not concentrated beyond agreed limits, and not cross-aged by a customer with a significant past-due balance. The specific eligibility criteria are defined in your credit agreement and negotiated based on your portfolio characteristics.
How does Sigma protect itself if customers don't pay?
Sigma holds a UCC-1 lien on your accounts receivable as the primary security interest. Because you manage collections, we monitor your aging report closely — ineligible or aging receivables reduce your available borrowing base, which naturally limits exposure.
Is this the same as a bank revolver secured by A/R?
Structurally similar, but different in key ways. A bank A/R revolver typically requires strong business credit, financial covenants, a long approval process, and annual renewals. Sigma’s AR funding is underwritten primarily against your receivables quality — not your balance sheet — and can be structured and deployed faster.
Is there a personal guarantee requirement?
AR funding facilities are underwritten against the quality of your receivables, not your personal assets. Personal guarantees are typically not required. We evaluate each facility on its own terms — the specifics depend on your receivables portfolio and the structure we agree on.
Sigma's Full Suite
Other Working Capital Solutions
Fast per-invoice funding
Invoices funded the same day once your account is set up. Month-to-month. NOA required. Best for businesses that want speed and collections handled for them.
Invoice Factoring
Larger facility against A/R, inventory, equipment
For manufacturers and distributors with complex collateral profiles who need higher facility sizes.
Asset-Based Lending
Working capital through Chapter 11
Court-approved DIP facility for businesses in bankruptcy reorganization.
DIP Financing
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See Which Option Fits Your Invoice Cycle
AR Funding, Invoice Factoring, or ABL — we'll recommend the right structure in the first conversation. No obligation.
- No personal guarantee
- Confidential review
- No commitment required