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Aging report A/R aging
Also called AR aging, aged receivables, aging schedule.
A schedule of unpaid invoices sorted by how long they have been outstanding, and the first document any receivables funder asks for.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
The report lists every open invoice by customer and slots it into buckets, usually current, 1-30, 31-60, 61-90 and over 90 days past invoice or past due. A payables aging does the same for what you owe. Together they tell a funder whether the business is a cash generator or a cash trap.
Underwriters read three things from it. Where the balance concentrates, because a ledger weighted to the older buckets means either slow customers or unresolved disputes. Which debtors dominate, since one customer at half the ledger is a single point of failure. And whether the report reconciles to the general ledger and the bank statements, since an aging that never ties out is a sign of unbilled work, credits not posted, or invoices raised early.
For a factoring or ABL facility, the aging drives the borrowing base directly: it determines what falls outside the eligibility window and therefore what you can draw against. Most facilities require it weekly or monthly, and the reporting obligation is a covenant, not a courtesy.
Aging by invoice date and aging by due date are different reports. On 60-day terms, an invoice that is 45 days old is current by due date and firmly in the 31-60 bucket by invoice date. Check which basis the funder is using before arguing about eligibility.
Where this one catches people
A clean aging can hide dilution. Invoices that are paid short, credited back, or written off never reach the 90-day bucket at all, so the report looks healthy while a meaningful share of billed revenue is never collected. Funders test for this by comparing invoices raised against cash received over the same period, and price the gap.
Worked through
Ledger of 500,000: 300,000 current, 120,000 at 31-60, 50,000 at 61-90, 30,000 over 90. If the facility makes over-90 ineligible and also disqualifies any debtor with more than 25 percent of its balance over 90 (cross-aging), a single slow customer can knock its current invoices out of the base too.
Figures in the example are illustrative. They show the arithmetic, not a quote — what any one lender would charge is on that lender's page, where it is published at all.
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Aging report — common questions
What does aging report mean?
A schedule of unpaid invoices sorted by how long they have been outstanding, and the first document any receivables funder asks for.
Where does aging report catch people out?
A clean aging can hide dilution. Invoices that are paid short, credited back, or written off never reach the 90-day bucket at all, so the report looks healthy while a meaningful share of billed revenue is never collected. Funders test for this by comparing invoices raised against cash received over the same period, and price the gap.
Is aging report the same as an interest rate?
Aging report is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does aging report apply to?
Working Capital, SBA Loan, Invoice Financing, Asset-Based Lending.
Is there a worked example of aging report?
Yes, on this page, and it is labelled illustrative. It shows the arithmetic, not a quote from any lender.
What else should I read alongside aging report?
Accounts receivable, Borrowing base, Concentration, Cross-aging, Days sales outstanding.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.