How is this different from invoice factoring?

Factoring sells your invoices, is priced per invoice, and usually notifies your customers. An AR-backed line of credit is a revolving facility you draw and repay; you keep the customer relationship and collections. Factoring is faster to establish; a line is generally cheaper if you qualify.

One customer is 55% of our receivables. Is that a dealbreaker?

No, but it shapes the structure. Concentration is normal in B2B, and lenders handle it with a concentration cap — the portion above the cap simply becomes ineligible for advance rather than disqualifying the file.

Why not just tighten collections instead?

Do both. Collections discipline is free and a line is not. But when a national customer's payment terms are non-negotiable, no amount of follow-up moves them — that is a structural gap, and financing is the correct tool for it.

Our bank has a blanket lien. Can we still do this?

Usually, with either a subordination or an intercreditor agreement, or by replacing the bank facility entirely. Tell us about existing liens at the start; discovering them at closing is what causes deals to slip weeks.

Profitable but cash-poor

A Line of Credit for a Slow Receivable Cycle

Profitable on paper and short on cash is the most common condition in B2B business, and it is almost always a receivables problem rather than a margin problem. When your best customers are also your slowest payers, you are effectively extending them interest-free credit out of your own operating account. A revolving line converts that structural lag into a manageable, priced cost you control.

Quick answer

A revolving line of credit for businesses whose customers pay in 60-90 days. Bridge the AR gap without selling invoices or notifying your customers.

Get a structure for this situation

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You are probably here because

Your income statement looks fine and your bank balance does not

Large enterprise customers dictate 60 or 90 day terms and will not negotiate

You are paying suppliers in 30 days and collecting in 75

Growth is making it worse, because every new account widens the same gap

How we structure it

Line size$100K – $10M

Advance rateTypically 80-85% of eligible receivables

RevolvingAvailability rebuilds as invoices are collected

Time to close2 – 4 weeks

What we need to give you an answer

Have these together and you will know where you stand in 24-48 hours instead of three weeks.

Detailed AR aging — the central document in this file

Customer concentration, since one customer at 60% of AR changes the structure

Dilution history: credit memos, disputes, and write-offs against prior billings

Whether existing liens or a bank blanket lien already sit on the receivables

How it played out

Closing a 45-day structural gap

A commercial janitorial company serving corporate campuses ran a 74-day average collection period while paying labor weekly and suppliers in 30 days. On $11M of revenue, roughly $2.2M was permanently tied up in receivables. Profitable every year, tight on cash every month. We closed a $1.6M revolving line advancing 82% against eligible AR. Availability rebuilt as invoices collected, and the company stopped timing supplier payments around deposit dates for the first time in four years.