A\/R Line of Credit: Unlock Cash Flow from Your Outstanding Invoices

For many businesses, a significant portion of their assets is tied up in outstanding invoices. While those payments are coming, waiting can stifle growth or create cash flow gaps. What if you could access that money now?

An Accounts Receivable Line of Credit offers a flexible solution for leveraging your accounts receivable, transforming your outstanding invoices into immediate working capital that can fuel your business growth.

What is an A/R Line of Credit? A Clear Definition

An Accounts Receivable Line of Credit is a revolving line of credit secured by your business's outstanding invoices. It allows you to borrow against the value of your current, unpaid invoices, converting them into immediate working capital. As your outstanding A/R fluctuates, so does your available line of credit.

Think of it as a continuous loan based on the money your customers owe you, making that money available to you instantly instead of waiting for payment terms to expire.

How an A/R Line of Credit Works

Understanding the key characteristics of A/R Lines of Credit helps you evaluate whether this financing solution aligns with your business needs:

Collateralized by Invoices: Your eligible accounts receivable serve as the collateral for the line of credit, providing security for the lender while giving you access to capital.

Revolving Access: As you collect on your invoices and repay the line, your available credit replenishes, allowing you to draw funds again as new invoices are generated. This creates a continuous cycle of available capital.

Financing Percentage: You can typically finance up to 95% of your current accounts receivable, maximizing the capital available from your outstanding invoices.

Facility Size: National Business Capital offers facility sizes ranging from $100,000 to $100,000,000, accommodating businesses of various scales.

Competitive Rates: Rates start at Prime + 2%, providing cost-effective access to working capital.

Fast Funding: Application to funding can be as quick as 7+ days, ensuring rapid access to the capital you need.

Qualification Requirements: Generally requires 1 year in business, no minimum FICO score, $1 Million+ in annual sales, and at least $100,000+ in accounts receivable on short terms.

Who Needs an A/R Line of Credit?

A/R Lines of Credit are particularly valuable for specific business scenarios and industries:

Businesses with High Accounts Receivable: Especially those with long payment terms (30, 60, or 90 days) from clients, where significant capital is tied up waiting for customer payments.

Rapidly Growing Businesses: Companies that need cash flow to cover expenses, inventory, or payroll before customer payments are received.

Companies with Large Contracts: Businesses that need to fund projects where payment is deferred until completion or milestones are met.

Industry Focus: This funding is especially beneficial for Manufacturing, Staffing, Wholesale/Distribution, Energy, and Technology businesses that typically carry substantial accounts receivable.

Key Benefits of an A/R Line of Credit

Immediate Cash Flow: Converts future revenue into present working capital, eliminating the wait for customer payments.

Flexible & Revolving: Adapts to your A/R levels, providing continuous access to funds as needed without requiring new applications.

Non-Dilutive: You retain full ownership of your company; no equity is given up in exchange for capital access.

Scalable: Grows with your business's sales volume, providing more capital as your receivables increase.

Supports Growth: Allows you to take on larger orders or projects without cash flow constraints, enabling business expansion.

Unlocking Your Invoices with WealthSecure Funding & National Business Capital

Leveraging your accounts receivable is a smart way to optimize your business's cash flow and drive growth. At WealthSecure Funding, in partnership with National Business Capital (NBC), we streamline your access to powerful A/R Line of Credit solutions.

NBC's efficient process connects businesses with high accounts receivable to specialized lenders, offering facilities from $100,000 to $100,000,000 with fast funding timelines. Their expertise in receivables financing ensures you get competitive terms and rapid access to capital.

As your dedicated advisor from WealthSecure Funding, I provide clear, concise insights into how an A/R Line of Credit can serve your business's ongoing financial health, particularly for businesses with $1M+ in annual sales and $100K+ in accounts receivable. I'm available evenings and weekends to discuss your specific needs and help you understand how this financing solution can accelerate your growth.

Next Steps: Accelerate Your Cash Flow from Invoices

Ready to transform your outstanding invoices into immediate working capital? An A/R Line of Credit could be the key to unlocking your business's growth potential while maintaining healthy cash flow.

CLICK HERE TO TAKE YOUR BUSINESS HEALTH CHECK-UP →

Have questions about leveraging your receivables or optimizing cash flow? Contact WealthSecure Insights for a personalized consultation to explore how an A/R Line of Credit can benefit your specific business situation.

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Important Considerations: A/R Lines of Credit are secured by your accounts receivable and require consistent invoice generation. Terms and availability depend on your business's creditworthiness, accounts receivable quality, and specific lender requirements. This information is for educational purposes and does not constitute financial advice.

About WealthSecure Funding: WealthSecure Funding, in partnership with National Business Capital, specializes in connecting businesses with the right funding solutions for their growth and operational needs. Our focus is on understanding your business and simplifying the path to capital access.