Working Capital & Factoring

Working capital loans, often referred to as lines of credit or factoring lines, are capital facilities that are secured most typically by accounts receivable and inventory. The lender will advance a percentage against the total in each category for the purpose of speeding up your cash cycle. The result is increased cash flow which translates to the growth of your business.

In a factoring arrangement, the lender purchases the invoices for a period up to 120 days and provides an advance against the invoice. Factoring is a useful tool for company profiles including customer concentrations, recent loses, startup ventures or established companies looking to unlock more cash from their accounts receivable assets.

Working capital lines are similar to asset based loans in that they lend against the same asset classes of inventory and accounts receivable. However, working capital lines can also be provided to online retailers and brick and mortar business selling directly to the consumer that do not have accounts receivable.

We have been serving Huntington Beach with working capital loans and factoring loans since 2010. Call us to explore how these loans can assist your business.