Line of Credit
Leverage your outstanding receivables for a working capital line of credit
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Line sizes up to $5,000,000
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Closing in under 1 week
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Interest only revolving credit
What is an asset based Line of Credit?
An asset based line of credit uses the A/R of a business to collateralize a credit line. In this structure we use the pool of receivables owed to our clients to determine real time availability of working capital. For example, with an 85% advance rate on $1,000,000 of eligible receivables, there would be $850,000 of available funds for a business to draw. With no minimum utilization requirements and no fees to draw, an asset based line of credit is a flexible solution for growing B2B companies.
What is an asset based Line of Credit?
An asset based line of credit uses the A/R of a business to collateralize a credit line. In this structure we use the pool of receivables owed to our clients to determine real time availability of working capital. For example, with an 85% advance rate on $1,000,000 of eligible receivables, there would be $850,000 of available funds for a business to draw. With no minimum utilization requirements and no fees to draw, an asset based line of credit is a flexible solution for growing B2B companies.
What is the difference between a Line of Credit and Invoice Factoring?
Both an asset based line of credit and invoice factoring use invoices as collateral to secure each advance. The major difference between the two programs is that invoice factoring focuses primarily on each individual invoice whereas an asset based line of credit considers the entire pool of invoices. An asset based line of credit is typically reserved for profitable businesses that have a large diversity of customers and a strong balance sheet.