An accounts receivable line of credit is established to accelerate cash flow, whereby advances are made against accounts receivables. The rate of advance on accounts is generally between 75-80% of the accounts receivable balance.

For example, a borrower submitting $500,000 of accounts receivables prior to noon on a given day would expect to receive an advance of $400,000 by noon the following day, based on an 80% advance rate.

As collections are received, proceeds are credited to the loan balance. For example, if a client had borrowed $400,000 against $500,000 in assignments, he would expect to receive $100,000 as a refund upon submitting the $500,000 payment to BFI®.

Our loans are set up in a self-liquidating fashion. Advances are based on products shipped and/or services rendered to creditworthy customers with loans paid down as cash collections are received.