Manufacturing
Materials before invoices
Raw materials are bought weeks before finished goods are invoiced.
- Materials and components
- Payroll through long production runs
- Deposits on large purchase orders
Home / Industries & FAQ
Industries
Every business has a cash cycle. We start with yours.
The need is the same everywhere: cash goes out before it comes back. The shape of that gap is what differs.
Eight industries
Where the gap shows up.
Healthcare practices
Care now, reimbursement later
Care is delivered today; payer reimbursement follows on its own schedule.
- Payroll and staffing
- Equipment deposits and upgrades
- A new location's ramp-up
Distribution & logistics
Paid now, collected on terms
Inventory and fuel are paid now; customers pay on net terms.
- Inventory ahead of demand
- Fleet fuel and maintenance
- Bridging net-30 to net-90 terms
Construction & trades
Work ahead of each draw
Labor and materials are paid before each progress draw is approved.
- Mobilisation on a new contract
- Materials between draws
- Retainage held until completion
Restaurant & hospitality groups
Daily cash, lumpy costs
Cash flow is daily, but buildouts, equipment and seasonal staffing come in lumps.
- Seasonal staffing
- Equipment replacement
- Opening costs for an added location
Professional services
Billed in arrears
Work is billed after it is done, often in arrears.
- Payroll between billing cycles
- Bridging a slow-paying client
- Hiring ahead of a signed engagement
Wholesale & import
Paid at origin, sold months later
Goods are paid for at origin and sold months later.
- Deposits to suppliers
- Freight and duties
- Building inventory for a selling season
Staffing & field services
Weekly payroll, monthly receipts
Payroll runs weekly; clients pay monthly.
- Weekly payroll
- Onboarding a large account
- Covering a client's slow quarter
Industry examples are illustrative. Eligibility depends on the specific business and on underwriting.
Use cases
Six ways companies use a line.
- Smoothing the cash cycle.
Pay suppliers and staff on time while receivables are still outstanding.
- Seasonal inventory.
Build stock ahead of the season and repay as it sells.
- Taking a supplier discount.
Pay early when the discount is worth more than the interest; repay as cash comes in.
- Mobilising a contract.
Cover start-up labor and materials on a new contract before the first payment.
- A cushion, not a crisis.
An approved, unused line is in place before a slow month, not requested during one. Some lines charge a fee on the unused portion; any such fee is in your written terms.
- Bridging to longer-term financing.
Fund a near-term need while a term loan or other permanent capital is put in place.
Rule of thumb
A line of credit is for short-term, self-liquidating needs: cash that comes back within the business cycle. Long-lived assets such as real property or major equipment are usually better matched to term financing.
Questions
Asked before every first call.
Plain answers. Where the answer depends on your business, we say so.
The basics
What is the difference between a line of credit and a term loan?
A term loan provides one lump sum repaid on a fixed schedule. A line of credit sets a limit you can draw from, repay and draw again during its term, and interest is generally charged only on what is outstanding.
What does "private" mean in a private business line of credit?
It means the line is provided by an independent private, non-bank lender rather than through a bank's standard program. It is still business credit for commercial purposes. We do not offer personal, consumer or household credit. It is not a personal line of credit, a home-equity line or a private-banking product, and it is never secured by a personal residence.
Can the funds be used for personal expenses?
No. Every line is for commercial purposes only, and applicants confirm that during pre-qualification.
Qualifying
Does pre-qualification affect my credit?
Pre-qualification asks for no Social Security number or date of birth and does not involve a personal or business credit report. If you move to underwriting, we will ask for your written authorization before any credit report is ordered.
Do I need collateral?
Not always. Unsecured lines rely on cash flow and credit; secured lines use business assets such as receivables, inventory or equipment, and can support larger limits.
Will I need to sign a personal guarantee?
Often, yes. Lenders commonly ask principal owners to guarantee a business line. Whether one is required, and its scope, is set out in your written terms.
We are a younger company. Is there any path?
Possibly, through a private line, if there are real assets, contracts or receivables to underwrite. Tell us about it in pre-qualification.
What if we are declined?
We tell you in writing. You have the right to a statement of the specific reasons; see the Equal Credit Opportunity Act notice on the Apply page.
Terms and costs
What will it cost?
Pricing depends on the business, the structure and the collateral, so we do not publish a rate. Before you sign, you receive every cost in writing: the rate basis, any fees, and, where your state requires it, a standard commercial-financing disclosure.
How long does a line stay open?
Lines are set for a term and reviewed for renewal. Renewal is a new credit decision based on the business's performance.
This site
Is pre-qualification an approval?
No. It tells us enough to see whether a line may fit and to contact you. It is not an approval or a commitment to lend. If we are not able to move forward, we will tell you in writing, and you can ask for the reasons.
What happens to the information I enter?
When you select Submit, your answers are sent over an encrypted connection to Capital Consortium, LLC. We use them to review your request and contact you about it, and we share them with independent lenders only so they can evaluate it, as described in our Privacy Notice.