United States · Secured revolving credit
For businesses that invoice customers and need recurring working capital, a secured line of credit can help bridge the time between paying expenses and collecting receivables.
U.S. financing. Amounts shown in USD. For Canadian requests, see the Canadian financing overview.
Historical client approval · 2024
This anonymized client approval illustrates one accounts-receivable line structure. Its limit, pricing and conditions were specific to that transaction. A new request requires current underwriting and a written offer.
This is a historical approval example. This example does not establish a program maximum, and Prime + 4.00% is not a current quote. The original approval was subject to closing conditions and deadlines in 2024.
Monthly interest estimator
Try a borrowing amount and rate assumption. Interest-only payments cover interest; the drawn principal remains to be repaid.
Illustrative inputs, not a current quote. The starting Prime assumption of 7.00% is hypothetical. The USD 500,000 limit, 4.00% spread and 1.00% fee assumptions reflect the historical approval example. Edit them to match a written offer.
For the fee calculation. An entered limit is not confirmed borrowing availability.
Assumed unchanged during the month, so it equals the average daily drawn balance.
Hypothetical, not a live or historical benchmark quote.
Estimates update as you type. All dollar amounts are in USD.
Estimated monthly interest
USD · Interest only
Principal and fees are separate.
Your estimate will appear in the inquiry for you to review and edit. Calculating does not submit a request.
This illustration uses the historical letter's monthly-interest convention and a constant drawn balance and rate for one month. Fees are excluded from interest. Processing costs, deposit credits, insurance and other charges are not calculated. The example's 30-consecutive-day zero-balance condition may require earlier repayment; its timing must be confirmed. Principal falls due at the one-year maturity unless renewed or repaid sooner. Renewal is at the lender's discretion.
Formula: average daily drawn balance × (Prime + spread, as a decimal) ÷ 360 × 365 ÷ 12. The written agreement governs actual charges and payment dates.
Understand the obligations
The historical example matured after one year. Renewal was optional for the lender, and the separate 30-day zero-balance condition could require an earlier full paydown. The business needs a repayment plan that works without an assumed renewal.
The example required first-priority receivables security. Existing factoring, receivables finance or other business liens need review before moving forward. Provide the agreements so any priority conflict can be identified early.
A USD 5,000 deposit toward actual processing costs also applied. At closing, unused deposit would credit the closing fee; costs exceeding the deposit remained payable. Refunds if the transaction did not close were conditional. The deposit should not be added to the closing fee as an automatic flat total.
The example also required a depository account with the lender, payment authorization, business-asset insurance, assigned key-person life insurance, and satisfactory financial and legal documentation. Ongoing financial reporting could be requested.
Prepare the request
These details help me assess the request and identify what a financing provider needs next. Exact document requirements and credit criteria depend on review.
No fixed advance percentage, minimum revenue or minimum credit score is established by this example. A stated facility limit does not mean the full amount will be available for every draw.
Choose the structure
A revolving line can suit recurring gaps that close as customers pay. Equipment purchases and other long-term uses may fit a separate repayment schedule. The right comparison includes cash availability, repayment obligations, security and total cost.
General background on receivables-backed revolving credit: OCC Asset-Based Lending handbook. The client example above is separate from that general guidance.
This example does not establish a program maximum. USD 500,000 was the limit in this historical 2024 client approval. Your requested limit and available draws require a separate review.
No. Prime plus 4.00% was the variable interest rate in the historical approval. Current pricing must be confirmed in a new written offer. Calculator rates are editable assumptions and are not a live Prime feed or an all-in APR.
No. In this example, monthly payments covered accrued interest, with the outstanding balance due at maturity. A separate 30-consecutive-day zero-balance condition also applied after the initial draw. Plan for principal repayment, fees and any required earlier paydown.
No. The example had an initial one-year term, and renewal was solely at the lender's discretion. A 1% fee on the full facility limit applied if it renewed. Repayment planning should not depend on an assumed renewal.
No. The example required an unlimited personal guarantee and a first-priority lien on business assets, subject to approved exceptions. First-priority security over receivables remained required. Insurance and other closing conditions also applied.
That needs to be reviewed before proceeding. This example required first-priority receivables security, so an existing factor or receivables lender may create a priority conflict. Provide the current agreements and lien information; compatibility cannot be assumed.
The example had a 1% closing fee and a separate USD 5,000 deposit toward actual processing costs. At closing, unused deposit would be credited against the closing fee. Processing costs above the deposit remained payable, and refunds if the transaction did not close were conditional.
For this U.S. offering, start with the requested limit in USD, use of funds, collection cycle, receivables aging, recent financial statements, current debts and liens. Further documents depend on review. Canadian financing follows a separate process; these example terms should not be assumed to apply.
Next step
Share the requested limit, your receivables and your repayment plan. I’ll review the structure with you and help determine the next step.
Page reviewed October 22, 2026 by Nicolas Lescalier. Historical example dated 2024. U.S. business financing; amounts in USD. Current terms and availability depend on underwriting and the written agreement.
Nicolas Lescalier is a Funding Manager at Premium Merchant Funding. He acts as a direct lender on select deals, works with an extensive network for co-funding, and helps arrange financing through third-party providers. All financing is subject to underwriting and approval and may not be available in every province, territory, or state, or for every business. Terms, costs, and timing vary by provider and applicant. Website calculators and examples are educational estimates, not offers or commitments to fund.