AR Finance FAQ

Take control of cash flow and get paid early for your invoices with PrimeRevenue-powered selective receivables finance. Learn more about receivables finance by reading the answers to FAQs below.


Most frequent questions and answers

Also known as receivables finance, accounts receivable (AR) finance allows companies to receive early payment on their outstanding invoices. This financing can be structured in a number of ways but generally involves a company selling their invoices, minus a financing fee, prior to its customer paying the invoice, thus securing early payment and improving cash flow. This is done without involvement from and, in the right circumstances, disclosure to their customers, also referred to as obligors or buyers.

There are several options for financing accounts receivable, three of which are explained below: asset-based lending (ABL), traditional factoring and selective receivables finance. Asset-based lending (ABL) is a loan using assets (like accounts receivable) as collateral. ABL takes an all-or-nothing approach that requires companies to finance all of their accounts receivable. Traditional factoring is when a company sells receivables to a third party for the invoice value minus various fees and reserves. Unlike ABL, factoring allows companies to choose receivables from specific obligors to sell, however all receivables from that particular obligor must be sold for early payment. The third option is selective receivables finance, which allows companies to get paid early on specific invoices for their largest customers depending on their cash flow needs. Companies can select specific obligors from whom they would like to sell accounts receivables for early payment. Companies using this structure also have the added flexibility to choose which receivables of those particular obligors they would like to sell for early payment. The only conditions for selective receivables finance are that the obligor must be a financially well-positioned, public company and the total accounts receivable with that obligor must typically meet a certain threshold (although this varies based on the funder).

There are several levers that can be pulled to improve cash flow, each with their own unique benefits and drawbacks. Companies typically use AR finance to expedite payment on their receivables, providing cash to invest in business initiatives or address cash flow issues, among other things. The latter is extremely pertinent in response to the COVID-19 crisis as many CFOs and treasurers explore receivables finance as part of their liquidity management action plans. ABL tends to be a quicker and easier option as there is no program set up. It uses a blended advance rate for the entire portfolio based on performance and, because it is a loan, counts as debt on the balance sheet. Traditional factoring offers more flexibility than ABL due to the fact that companies can select which obligors’ accounts receivable they would like to trade. It also gives companies the option to finance their receivables from smaller or private obligors. This structure allows unsold accounts receivable to be held to maturity or monetized under other facilities such as a revolving credit agreement. However, factoring is more likely to be counted as debt. It also tends to have a higher receivables dilution and is generally more expensive because advance rates and fee structures are typically materially higher compared to other AR finance structures. Selective receivables finance is a version of factoring, with key differences. It offers all the benefits of traditional factoring plus more competitive pricing and flexibility. Because credit risk is isolated per obligor, selective receivables finance tends to be much more cost-efficient than traditional factoring due to an overall lower risk for the funder. An additional benefit is that only the most valuable accounts receivables are sold, preventing value dilution that occurs when high value receivables are lumped together with lower value receivables. Financing rates are competitive for mid-sized companies using AR finance because creditworthiness is based in large part on the customers’ credit rating.

Dilution is the difference between the face amount of invoice(s), also known as gross value, and the payment typically collected from the customer(s). Reasons for receivables dilution can include write-offs, returned goods, credits and more. Thus, dilution rate (the percentage that dilution represents over the gross value of invoices) is a key metric utilized by funders to assess risk associated with paying early for receivables from a specific obligor or buyer.

There are three main factors funders look at to asses suitability for a receivables finance program: Obligor risk is one consideration for funders when assessing a program. Funders examine each obligors’ characteristics, quality and risk profiles. Funders also assess the total value of receivables. Many funders require companies to reach a certain threshold of invoice value per obligor. If the receivables are too small, the company will likely not be eligible. Lastly, funders examine the seller’s credit profile, financial performance and short-term risk of the company’s industry.

Many companies have pledged their receivables for various reasons, but there are measures that can be put in place to implement successful receivables programs

Selective accounts receivable financing is a true sale of receivables. Unlike other AR finance structures such as ABL, selective receivables finance is not a loan and does not count as debt on the balance sheet.

SCiCustomer is PrimeRevenue’s cloud-enabled selective receivables finance solution that enables companies to sell their receivables from selected customers to a third-party financial institution for early payment. Some common features of a SCiCustomer selective receivables program are: Trades are considered “true sale” Programs can be complex in nature, spanning multiple seller entities, obligors and currencies PrimeRevenue provides a funding marketplace to source appropriate liquidty Traditional bank-led receivables finance programs are typically validated manually and executed with spreadsheets over email. SCiCustomer automates the validation process, provides visibility into all historical invoice data, reduces errors in rate calculations, and provides reporting capabilities and email notifications on program activity.

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Stephanie Wargo

VP, Global Head of Marketing

Stephanie joined PrimeRevenue in 2015 and oversees the company’s global marketing team and strategy. With a data-driven approach, Stephanie focuses on demand generation and thought leadership to drive brand awareness, strengthen client/partner relationships, and generate new sales opportunities. Stephanie has guided PrimeRevenue through new technology releases and an evolving FinTech landscape. In addition to leading PrimeRevenue’s internal and external communications, she implemented innovative demand generation and marketing strategies to enhance the company’s overall sales pipeline.

Stephanie has extensive experience in marketing and customer success. She previously served as Vice President of Marketing and Communications at BitPay and Vice President of Client Relations and Marketing at FirstView Financial. Stephanie earned a B.A. degree in Political Science from Agnes Scott College in Decatur, Georgia.

Brian Medley

VP, Global Head of Sales

Brian joined PrimeRevenue in early 2012, after more than 20 years of sales leadership, executive-level consultant and business growth experience. As VP, Global Head of Sales, Brian leads a growing team of fintech sales professionals with a focus on developing strong customer relationships, improving sales predictability and helping PrimeRevenue enter the lucrative mid-market.

Prior to PrimeRevenue, Brian honed his enterprise software sales leadership skills at Clarus Corporation. He also served as an operations and IT management consultant for Kurt Salmon Associates. In addition to his sales and consulting background, Brian has deep experience in the financial industry having founded a successful residential mortgage broker and lending business. He is a graduate of the Georgia Institute of Technology having earned a B.S. in Industrial Engineering and Economics and M.B.A. in Global Business.

Jason Green

SVP, Global Customer Success

Jason joined PrimeRevenue in 2021 following more than two decades in the fintech/financial services industry. He brings a strong background is sales leadership due to his impressive relationship building capability as well as a successful track record in creating structure and process improvements. In his role, Jason uses his keen attention to detail to strengthen the customer experience and enhance the company’s solutions to deliver more value to clients.

Prior to joining the company, Jason held several senior level and executive roles with a focus on building and scaling sales and support organizations at both large and small companies. Jason graduated from Murray State University with a B.S in Marketing.

Matt Ford

SVP, Global Product Innovation

Matt joined PrimeRevenue in early 2015 and is responsible for overseeing all commercial, strategic and operational aspects of PrimeRevenue’s supply chain finance offerings throughout EMEA, based in Prague. He has been instrumental in gaining global alignment and developing supplier enablement processes for the region.

Matt joined PrimeRevenue following a 15-year career at Morgan Stanley, where he worked in fixed income operations covering debt syndication through bonds, EMTNS, corporate loans and other debt securitization. Notably, he set up non-core location operations in Europe (Budapest) and all lending operations in Baltimore from scratch.

Matt, who was born and raised in South East England, earned a B.S. in Sports Science at University of Teesside where he mastered the art of TEAM development and accountability as a youth international rugby player.

Dominic Capolongo

EVP, Global Head of Funding

Dominic joined PrimeRevenue in 2016, and is responsible for leading our bank and capital markets funding strategies and execution. He focuses on building global, scalable and highly efficient funding structures that maximize options for supporting PrimeRevenue’s programs. Dominic began his career as an attorney and was a partner with Kaye Scholer before joining DLJ as a senior banker. Dominic brings tremendous strategic and capital markets experience in all areas of finance having held senior positions at, among others, Credit Suisse and RBC Capital Markets in addition to DLJ. Dominic earned a JD from Fordham University School of Law and a BA from SUNY Binghamton.

Gavin Cicchinelli

Chief Operating Officer

Gavin joined PrimeRevenue as Chief Operating Officer in 2021. With more than two decades of leadership and executive experience along with a deep understanding of the payments space, Gavin provides a unique focus on improving and strengthening operational strategies and implementing GTM growth execution. He is responsible for leading transformation across corporate and operational strategies as well as building a repeatable and scalable commercial growth strategy that aligns with PrimeRevenue’s core business while delivering key adjacent growth opportunities.

Prior to joining PrimeRevenue, Gavin served as President and Chief Revenue Officer of Integrated Solutions at TSYS, a global payment processing services company acquired by Global Payments (NYSE:GPN). There, he also served as Head of Product and divisional COO. Throughout his career, Gavin has held multiple leadership positions including VP of Sales, SVP of Business Development, and President of Financial Institutions. Gavin graduated from the University of Northern Colorado, Greeley.

David Quillian

Chief Legal Officer

David joined PrimeRevenue as General Counsel in 2007. He and his team have been instrumental in successfully creating the unique legal structures that support PrimeRevenue’s multi-funder model and global funding capabilities. David is also the lead named inventor on PrimeRevenue’s two patents for Electronic Time Drafts, which allow PrimeRevenue to manage supply chain finance programs using electronic negotiable instruments as opposed to accounts receivable. Prior to PrimeRevenue, David was General Counsel at Harbor Payments, which was acquired by American Express (AXP) in 2006, and Magnet Communications, which was acquired by Digital Insight (DGIN) in 2003. He holds degrees in Economics and History from Duke University, and Juris Doctor and M.B.A. degrees from the University of Georgia.

Nathan Feather


Nathan has successfully ushered PrimeRevenue from our very early days as a visionary startup, through the financial crisis to today’s position as a thriving mid-sized leader in the cloud-enabled supply chain finance marketplace since joining PrimeRevenue in January 2006. He was instrumental in recapitalizing the company with an $80M investment led by BBH Capital Partners in 2015. Prior to PrimeRevenue, he held various financial management roles with Ariba, Freemarkets and PriceWaterhouseCoopers. Nathan holds a BS in Accounting from Pennsylvania State University.

PJ Bain


PJ has an impressive and accomplished track record as an enterprise software entrepreneur and executive. PJ has built a solid record of success with PrimeRevenue since being appointed Chief Executive Officer in July of 2009. The company has received numerous awards for growth, customer service, innovation, along with being recognized as a top employer.

PJ is a life-long software and technology entrepreneur having been involved in numerous firms in the roles of founder, executive, advisor and investor. Immediately prior to PrimeRevenue, PJ was the VP and General Manager of Exact Holding N.V. (NYSE/AMS: EXACT), a leading global provider of business software solutions. He was previously Founder and CEO of Inspired Solutions, an Atlanta-based, B2B software and services firm that grew to be the largest reseller of Exact Software in North America, later acquired by Exact. PJ holds a Bachelor of Industrial Engineering from Georgia Institute of Technology.