A/R Line of Credit

A specialized form of asset-based lending that provides businesses with flexible access to working capital by using their outstanding invoices as collateral. Unlike traditional term loans that provide a fixed amount upfront, an A/R line of credit functions as a revolving credit facility that allows businesses to borrow against the value of their accounts receivable as needed. This financing solution is designed to accelerate cash flow by eliminating the 30-90 day waiting period for customer payments.

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    ADVANCE RATE
    85-90% on A/R less than 90 days old
    INTEREST RATE
    Prime Rate or SOFR
    TERM STRUCTURE
    2-3 years with automatic renewal
    TIME TO CLOSE
    30-45 days from signed term sheet
    CUSTOMER RELATIONS
    Direct payment to business
    COST SAVINGS
    Half the cost of invoice factoring

    When to Use A/R Financing

    Maximize your financial potential with our advisors who bring real-world expertise to the table. We're committed to leveraging their extensive knowledge to guide you towards financial success and security.

    Cash Flow Optimization

    Bridge payment gaps between invoice generation and customer payment cycles. Support payroll and operational expenses during collection periods while maintaining supplier relationships through consistent payment capabilities.

    Seasonal Business Support

    Inventory buildup financing for seasonal retailers and manufacturers. Support for businesses with predictable seasonal cash flow patterns and flexibility to increase borrowing during peak seasons.

    Growth & Expansion

    Capital for entering new markets or customer segments with funding for increased inventory. Working capital for business development, customer acquisition initiatives, and operational scaling.

    Manufacturing Operations

    Raw material purchasing flexibility for bulk discounts and work-in-process financing for longer manufacturing cycles. Support for custom manufacturing with extended production timelines.

    Advantages of A/R Financing

    Discover the benefits of a/r line of credit and how it can transform your business.

    Cost Effectiveness
    Half the cost of invoice factoring with better overall structure. Eliminates escalating rate structures common in factoring arrangements with no prepayment penalties or early termination fees.
    Customer Relationship Preservation
    Customers unaware of financing arrangement - payments come directly to business. Maintains professional image and customer confidence with no third-party collection involvement.
    Flexibility & Control
    Management retains control over customer relationships and collection processes. Ability to selectively finance invoices rather than all receivables with revolving structure for ongoing access.
    Strategic Advantages
    Establishes positive credit history with asset-based lenders for future financing needs. Senior secured position provides better borrower protections and pathway to traditional bank financing.
    Business benefits illustration

    Ready to unlock the value in your A/R?

    At Sereno Capital Group, we understand that your accounts receivable represent valuable assets that can be converted into working capital. We partner with lenders who offer A/R line of credit solutions that provide immediate access to cash, allowing you to maintain growth momentum and take advantage of opportunities without waiting for customer payments. With competitive rates, flexible terms, and a streamlined process, we help you maximize the value of your receivables.

    Frequently asked questions