A/R Financing, Factoring & Invetory Lines of Credit
These facilities are designed for established businesses that hold value in receivables or inventory and require structured access to working capital.
Best for:
➥ Businesses waiting on slow-paying clients
➥ Companies with large or growing accounts receivable
➥ Inventory-heavy businesses
➥ Rapid cash flow needs without taking on traditional debt
➥ Growing businesses experiencing seasonal or high-volume sales
What Is Accounts Receivable (A/R) Financing?
Accounts Receivable (A/R) Financing, Factoring, or Asset-Based Lending allows businesses to access working capital by leveraging unpaid invoices or other business assets, such as inventory. Instead of waiting 30, 60, or 90 days for customers to pay, a lender advances a percentage of the receivable value, typically shortly after the invoice is issued.
The advance is usually ongoing and adjusts in line with your sales volume and receivables balance. Once the customer pays the invoice, the remaining funds are released to the business, minus agreed fees and charges. This structure helps convert sales into immediate cash, without taking on a traditional fixed-term loan.
Unlike unsecured lending, this type of funding is secured against tangible business assets, making it suitable for businesses with strong invoicing but slower payment cycles. It is commonly used as a cash flow solution rather than long-term debt, and can operate alongside other finance products.
What Is Factoring?
Factoring is a form of receivables financing where invoices are sold to a funding provider. The provider advances a portion of the invoice value and collects payment directly from the customer. Once the payment is received, the remaining balance is released after fees.
Factoring is particularly useful for stabilising cash flow when customer payment terms are long or inconsistent. It provides businesses with quick access to funds while outsourcing the collection process.
What Is an Inventory Line of Credit?
An inventory line of credit is secured by the value of a business’s stock. The amount available depends on the quantity, type, and turnover of inventory.
This funding option is ideal for wholesalers, distributors, and product-based businesses that need capital to purchase, store, or replenish stock. It helps maintain inventory levels without tying up cash, supporting growth and operational continuity.
Eligibility Criteria
✓ Minimum monthly revenue of $50,000
✓ Consistent revenue
✓ Valuable receivables or inventory
✓ Clear financial records
✓ Active business bank account
✓ In business for at least 1 year.
Required Documents
✓ Signed application
✓ Last 6 months of business bank statements
✓ Previous year and year-to-date financial statements
(Profit & Loss and Balance Sheet)
✓ Aging A/R and A/P reports
APPLICATION PROCESS
Step 1 – Apply Online
Submit the secure form with
required documents.
Step 2 – Review
We assess your application
and funding options.
Step 3 – Terms Call
A funding specialist calls to
confirm terms.
