Receivables Purchase Line of Credit
Our receivables purchase line of credit product is unique in blending the clarity and price competitiveness of borrowing base reporting with the flexibility of a line of credit.
It works similar to a bank line of credit in that all of the clients receivables are included under the facility. Based on mutually agreed criteria, you can draw down advances on the eligible receivables. You can choose the amount you draw down to manage cash, or draw all that is available to manage cash flow.
Assuming $1,000,000 of eligible A/R and an 85% advance rate, you will have a borrowing base of $850,000 to draw against. As collections come in, and new receivables issued the borrowing base is updated.
Pricing is straight-forward, PNA charges a one time service fee on each receivable and an annualized prime based rate on amounts advanced. No hidden fees.
- Clarity – one simple flat fee on the A/R for the service, and a prime plus based rate for sums advanced.
- Easy to read on-line reporting with a borrowing base layout.
- Finance that is covenant free. Unlike banks and asset based lenders we have no covenants at all you are freed from monitoring your interest cover, profitability, leverage, cashflow and if you make profits you decide how much to distribute.
- Unlike other receivables financiers and factors, PNA does not make you wait for the benefit of A/R collections. There is no weekly ‘cash reserve’ release. Cleared funds reduce your borrowing base daily and can be advanced daily.
- You pay for what you use. For many businesses cash flow needs cycle up and down on a weekly, monthly, seasonal cycle. With our prime plus based fees if you do not need to draw on all of your available cash then you do not need to and you can save those fees.
- Fatigued with factoring – Many factors have made receivables based finance too complex, too expensive and too inflexible. Our Receivables Purchase Line of Credit is the solution to that and for our clients it is a bridge to bank line of credits should that be suitable for the client.
Receivables Finance and Factoring are a form of working capital finance for businesses that has a global reach and a long history. Here are some key statistics  on factoring;
Types of Clients That Opt for the Receivables Purchase Line of Credit
Types of Receivables Advanced Upon
- Growing businesses that want the flexibility and the level of advance rates provided.
- Mature businesses looking to manage cash flows and have a product more akin to a line of credit.
- Annual sales volume of $5 million to $60 million
- All industries that sell to other business on credit terms except construction and 3rd party medical billing.
We purchase receivables sold to other businesses on standard credit terms (up to Net 60). We look for these customers to be creditworthy and have extensive resource and experience in making commercial assessments. We fund receivables in the majority of sectors – manufacturing, staffing, transportation, consulting, advertising, call center services, engineering, oil support, biofuels, training, distribution, food, beverages, distribution, automotive, aviation, most other service sectors etc. The few sectors we do not serve are third party medical billing, house construction and progress billing.
Get A Quote
- Oil & Gas
- Temporary Staffings
- IT Hardware and Servicing
- Government Contracting
- Import / Export
- High Tech