Accounts Receivable Backed Lines of Credit
	A new or established business with financing based on quality of AR portfolio can participate in a business line of credit with AR as collateral. Businesses with a track record of success, effective billing history and credit worthy customers are good fits for a business line of credit. The borrower’s history in combination with improved visibility and asset quality improves the funding institution’s confidence that it will be repaid for its AR loan. The advantages of an accounts receivable backed line of credit are that they provide sustained method of financing at near-bank rates. A line of credit that can be drawn on at your discretion and repays itself as your customers pay you. Also, professional AR services result in higher quality asset supporting loan and healthier business. Finally, improved collections process and resources result in higher quality asset supporting loan and healthier business. Some of the drawbacks of AR lines of credit backed by accounts receivable are the business line of credit varies in size with sales and access to money is a function of billings. Also, if your existing billing operation is not working properly it may be a challenge to get started, but on the brighter side, it may end up radically improving once the professional AR outsourcing is introduced to your business. The cost of a business line of credit backed by accounts receivable is typically a flat monthly fee for AR outsourcing plus the bank rate on the loan. The best part of this financing method is that your customers see only a minimal impact of behind the scenes improvements to AR processes.
	Below are a number of articles that you can read that will assist you in obtaining a business LOC:
	Business LOC vs. Business Loan Securing a Business LOC Do You Need a Business Plan to get a Credit Line? How has the Economy Affected People's Ability to get Credit? Unique Business LOC Types Property Rehab Loans and Lines of Credit What is a Warehouse Line of Credit? Businesses Best Suited for a Business LOC Alternatives to Business Credit Facilites Using Personal Credit Cards Instead of Business LOC The Mechanics of a Business Loan The Mechanics of a Business Line of Credit Importance of Establishing a Business Line of Credit Using a Business LOC for Startup Capital Questions That Will Be Asked By Your Banker The Importance of Personal Credit When Obtaining a Business LOC What is an SBA Backed Business Line of Credit? Determining How Much You Can Borrow Through A Business LOC How a Business Line of Credit Should Be Used Comparing Offers from Banks for Business Lines of Credit Business LOC and the Concept of Leverage Secured Vs. Unsecured Business Line of Credit Using a Business Loan/Credit Line Brokerage Repayment of a Business LOC Commonly Used Terms in Lending Using a Small Bank to Obtain a Business Line of Credit New Business Line of Credit Business Revolving Line of Credit Overdraft Line of Credit Small Business Lines of Credit Accounts Receivable Backed Lines of Credit