Business Capital
Working Capital, Receivables-Backed
Business capital secured against accounts receivable. Get funded against revenue you've already earned but haven't yet collected.
Who this is for
Established B2B businesses waiting on payment cycles. Companies with predictable receivables looking to smooth cash flow or fund growth between collection cycles. Operators with creditworthy customers but slow-paying AR.
Typical loan structure
- Advance rate
- Typically 70% to 85% of eligible receivables.
- Lien
- First lien on the receivables.
- Eligibility
- Receivables from creditworthy obligors, with reasonable aging.
- Structure
- Revolving or term, structured around the AR cycle.
- Documentation
- AR aging schedules, customer concentration analysis, sample invoices.
Receivables-backed financing is different from a bank line of credit. We advance against specific AR rather than a generic credit limit. The collateral is the receivable itself, which means we underwrite the strength of your customers as much as the strength of your business.
Common use cases
- Bridging customer payment cycles (net 30, net 60, net 90)
- Growth capital for B2B operations
- Funding payroll or AP between collection cycles
- Opportunistic capital deployment
- Smoothing seasonal cash flow swings
- Capital for businesses with strong AR but limited bank credit