Ledgered Lines of Credit provide businesses with flexible, revolving access to capital based on their outstanding accounts receivable. This financing solution is ideal for companies seeking to enhance cash flow without relying solely on traditional credit metrics, making it a strong fit for growing, seasonal, or receivables-rich businesses.
What is a Ledgered Line of Credit?
A Ledgered Line of Credit is a dynamic lending structure that ties borrowing capacity directly to your accounts receivable Ledgered. As your receivables grow or fluctuate, your access to capital scales accordingly—offering a responsive and efficient financing tool that supports working capital, cash flow stability, and operational agility.
Access up to 90% of your eligible accounts receivable, providing immediate liquidity without adding long-term debt.
What types of assets qualify as collateral?
Accounts Receivable
Inventory
Machinery
Equipment
Commercial Real Estate
Debtor In Possession
When is a Ledgered Line of Credit the Right Fit?
As your business grows quickly, so do your receivables. A Ledgered Line of Credit lets you turn those unpaid invoices into working capital to fuel continued expansion.
If your sales cycle is highly seasonal, an LLOC helps maintain steady cash flow during slower periods—ensuring you can meet payroll, inventory, and other key expenses.
When offering customers longer payment terms, an LLOC helps bridge the gap—turning receivables into cash while keeping customer relationships intact.
For businesses without extensive credit history or assets beyond receivables, an LLOC offers a practical alternative to conventional loans.
The revolving nature of an LLOC provides continuous access to capital—perfect for covering ongoing operational needs, payroll, or inventory restocking.
Frequently Asked Questions
Costs generally include interest based on a benchmark rate plus a margin, as well as possible setup, maintenance, and transaction fees. Exact terms vary by lender and business profile.
With an LLOC, your business retains control over collections and customer relationships. In contrast, traditional factoring involves the factor directly collecting payments from your clients.
Startups may face challenges qualifying due to limited accounts receivable or operating history. Lenders generally prefer companies with a track record and steady invoice volume.
Most LLOCs are structured confidentially, so customers are not informed. Your business maintains direct communication and billing with clients.
Your business is still responsible for the unpaid amount. The lender may require you to replace the invoice with another or repay the advanced portion.
Once the credit line is established, funds are often available within 24 hours of submitting eligible invoices—helping bridge cash flow gaps promptly.
Industries like manufacturing, staffing, distribution, and transportation benefit due to high receivables and longer payment cycles. These businesses often need flexible, recurring access to working capital.