Recently I've closed on a few facilities of short term working capital using a relatively new product call the "Virtual Line"
These work very much like the traditional Lines of Credit used to; for example they are available in whole or in part (multiple tranches). This makes it easier to schedule purchase finance(s) since each draw starts a new 12-month timer.
Rates are also similar, around 2.6-2.9/mo with amazing discount on effective rate for early pay - schedules go up to 50% of term and reduce cost of capital as much as 50%.
This lending product works perfectly for companies with $5+ Million in annual sales - Ideal for companies who make staggered purchases of finished product or raw materials.
Two Virtual Line facilities were funded last week, one for $850k and the other for $1.5M. Both businesses began with smaller draws of $300-400k. Once the funds are drawn, weekly payments start the following week. If the business decides to pay off early in, say, 60 days the rate reverts to a much lower 1.14 factor saving the company money but still keeping it funded while receivables were collected.
If the business decided to then come back to the "well" there would be all of the original approved amount including any draws paid back. The terms stay the same and there is no collateral attached, it's literally a signature loan that can go as high as revenues allow.
The best thing is the speed: 48 hours from approval to funding. Subsequent draws are even quicker!
This product requires good to very-good credit but, for those who qualify it is an extremely helpful tool that provides immediate working capital to pay critical expenses in meaningful amounts.
For businesses nowadays, alternative sources for affordable working capital are critical. Business as usual is no longer an option for many businesses, call me about a Virtual Line and let's see if it's a fit for you too!