A line of credit (LOC) is a flexible, revolving loan that allows you to borrow funds up to a set limit, repay them, and borrow again as needed. Unlike a traditional loan that gives you a lump sum, you only pay interest on the amount you actually use, making it ideal for ongoing expenses or emergencies.

Accounts receivable (AR) financing is a working capital solution where businesses use their unpaid customer invoices as collateral to secure an immediate cash advance or sell them to a third party. It converts slow-paying invoices (30–90 days) into instant cash—typically 80-95% of the invoice value—to improve cash flow, pay expenses, or fuel growth.

Working capital is a key financial metric representing the liquid funds a business has available for day-to-day operations and short-term obligations. Calculated as Current Assets - Current Liabilities, it measures operational liquidity and financial health. Positive working capital ensures a company can pay debts, manage inventory, and fund payroll.

Invoice factoring is a financial transaction where a business sells its outstanding, unpaid customer invoices to a third-party, known as a factor, to gain immediate working capital. Instead of waiting 30–90 days for customers to pay, the business receives an immediate advance (typically 70%–90%) of the invoice value, with the remainder (minus fees) paid upon final collection.

A term loan is a lump-sum, fixed-rate or variable-rate loan that a business or individual borrows from a financial institution and repays with interest in scheduled installments over a set period, typically 1 to 10 years. It provides upfront capital for major investments like equipment, real estate, or expansion, and is usually repaid through predictable monthly or quarterly payments.

Equipment financing is a type of secured loan or lease used by businesses to acquire machinery, vehicles, or technology, where the equipment itself serves as collateral. It enables companies to obtain essential assets without high upfront cash outlays, offering manageable, often fixed-rate, monthly payments.