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Accounts Receivable Line Of Credit

A/R Line of Credit: Fuel Your Business Growth with Unpaid Invoices

An Accounts Receivable (A/R) Line of Credit is an innovative and flexible financing option designed for businesses that rely heavily on invoicing, such as those in manufacturing, staffing, energy, technology, and wholesale/distribution industries. If your business has cash tied up in unpaid invoices, an A/R Line of Credit can be the perfect solution to unlock that capital and keep your operations running smoothly.

This revolving line of credit allows you to borrow against your outstanding receivables, giving you access to working capital when you need it most. As your invoices get paid, your credit line replenishes, providing an ongoing source of cash flow. This can be especially beneficial for businesses with fluctuating sales cycles or unpredictable payment schedules.

How Does an A/R Line of Credit Work?

With an A/R Line of Credit, you’re essentially leveraging the money owed to your business through unpaid invoices. The process is straightforward:

  1. Submit your unpaid invoices to the lender.
  2. The lender evaluates your accounts receivable and provides a line of credit based on a percentage of the value of those invoices.
  3. As you collect payments from your customers, the available credit line is replenished, making it a revolving line of credit that adjusts as your A/R fluctuates.

This solution ensures you have continuous access to working capital, allowing you to cover day-to-day expenses, purchase inventory, or invest in business growth without waiting for your customers to pay.

Unique Benefits of an A/R Line of Credit:

  • Flexible Facility Size: Businesses can access a line of credit ranging from $100,000 to $100,000,000, depending on their needs and outstanding receivables.
  • Revolving Credit: The credit line adjusts automatically as your receivables fluctuate, ensuring you always have access to capital as your business grows.
  • Competitive Rates: Interest rates start at Prime + 2%, making it an affordable option compared to many traditional financing products.
  • High Financing Percentage: You can receive up to 95% of the value of your receivables, allowing you to turn outstanding invoices into immediate working capital.
  • Fast Application Process: You can typically secure funding within 7+ days, making it a quick solution for businesses in need of immediate cash flow.

Qualifications for an A/R Line of Credit:

  • 1 year in business: You need to demonstrate a proven track record of managing accounts receivable.
  • No minimum FICO: Unlike traditional loans, your personal or business credit score is not a primary factor in the approval process.
  • $1 million in annual sales: Your business needs to generate at least $1 million in revenue to qualify.
  • $100,000+ in A/R: You should have at least $100,000 in outstanding receivables on short terms (usually 30 to 90 days).

Advantages for Your Business

  • Improved Cash Flow: No more waiting for customers to pay their invoices. With an A/R Line of Credit, you can access capital immediately, allowing you to pay suppliers, cover payroll, and manage day-to-day operations.
  • Scalable Financing: As your business grows and your receivables increase, so does your access to credit. This is particularly valuable for businesses with seasonal or cyclical sales patterns.
  • Affordable and Flexible: With competitive rates and no fixed repayment schedule, you only pay interest on the funds you draw, making it a cost-effective solution for managing cash flow.
  • Quick and Easy Access: The fast approval process means you can get the funds you need in as little as a week, without the lengthy approval process of traditional loans.

If you’re ready to turn your outstanding receivables into working capital, apply for an A/R Line of Credit today. This solution provides a flexible, fast, and affordable way to keep your business thriving, even when cash is tied up in unpaid invoices.

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Business Line Of Credit - Business Financing Solutions
Business Line Of Credit – Business Financing Solutions – Accounts Receivable Financing