Business Capital
Using Receivables as Collateral
Asset-rich and cash-tight is a solvable problem. This guide covers one of the solutions.
Business Capital
The short version, then the substance.
Key Takeaways
- Money you have already earned
- How it differs from factoring
- What makes receivables bankable
Money you have already earned. Outstanding invoices are assets. Strong receivables from credit-worthy payers can secure working capital so the business stops financing its customers for free while starving its own operations.
How it differs from factoring. Factoring sells the invoice. Receivables-secured lending borrows against it: you keep the customer relationship, the collection, and the upside, and simply pledge the asset. For most operators that control is worth keeping.
What makes receivables bankable. Aging under 60 days, payers with real credit, and clean documentation. Concentration in one customer weakens the collateral. We look at the book the way a buyer would, and price the honest picture.
The South Texas angle. Averlend underwrites this every week in Corpus Christi and across Nueces County. If you are working a deal in downtown or anywhere else in the metro, the theory above comes with a local desk attached: see our Corpus Christi lending page or send the deal directly.
Questions
Quick answers from the Averlend desk.
The Averlend Promise
Reading is free. So is a deal analysis.
Send the collateral, the numbers, and the exit. An Averlend rep will reach out ASAP, same business day.