AFO · Working capital
Capital that breathes with the business cycle.
Working capital is the gap between cash going out (payroll, suppliers, inventory) and cash coming in (collections, deposits). When the gap grows faster than the business can self-fund, the right answer is a facility that scales with the gap — not a fixed term loan paying out long after the cash crunch has passed.
What makes this use case distinct
- Facilities that scale with AR + inventory, not against a fixed schedule.
- Effective cost of capital modelled — not just the headline rate.
- Conventional, asset-based, factoring, and RBF compared side by side.
How this is usually structured
Working capital, in practice.
Asset-based revolvers tie the available borrowing capacity to eligible receivables (typically 85% advance) and inventory (50–65% on finished goods). The line grows as AR grows, pays down as cash lands, and accrues interest only on the drawn balance. For working-capital-intensive businesses — distributors, manufacturers, staffing — this is usually the cleanest answer.
Invoice factoring sells the receivables outright rather than borrowing against them. Cash lands within days rather than at 60 days, but the factor takes 1–4% per invoice and (often) the customer relationship. Suits B2B businesses where the customer credit is strong but the DSO is the constraint.
Revenue-based financing advances against future monthly revenue rather than against a balance-sheet asset. Repaid as a fixed percentage of sales until a 1.2–1.5x multiple is paid back. No personal guarantee, no dilution — but the effective APR depends on repayment speed, so it can be expensive if the business scales fast.
3 programs in the catalog · 2 live
Programs that fit working capital.
Each card links to the program profile. Coming-soon programs are surfaced honestly — the screener routes there with a consultation CTA instead of a self-serve apply link until the integration is wired through.
ABL Revolver (Asset-Based Lending)
Coming soonRevolving line tied to eligible receivables and inventory. Scales with the business.
Immediate cash against outstanding receivables. Suits B2B businesses with long DSO.
Capital advanced against future monthly revenue, repaid as a fixed % of sales.
Other use cases
Funding a different need?
Each use case has its own structuring conversation. Working capital and equipment look nothing like an MBO; an export ramp doesn’t look like a refinance.
- 5 programs
Equipment
Equipment financing is the cleanest tier of debt to underwrite — the asset itself secures the facility, the useful life of the asset matches the loan term, and the lender has a clear recovery path if things go sideways. That clarity translates into faster approvals, higher LTVs (75–90%), and less restrictive covenants than cash-flow lending.
Explore the use case
- 10 programs
Expansion
Expansion capital — a second location, a new production line, a step-change in headcount — fails when it's sized purely on historical cash flow. The new location won't be profitable in month one. The lender needs to see a credible projection of the post-expansion cash flow and the ramp window in between, with the coverage maintained throughout.
Explore the use case
- 3 programs
Acquisition
Acquisition financing turns on the combined entity, not the buyer alone. Lenders underwrite the deal on pro forma cash flow, post-synergy coverage, and the buyer's integration plan. The package needs to demonstrate that the combined business carries the proposed debt cleanly — and that the buyer has run the diligence to back the projection.
Explore the use case
Match the instrument to the use, not the other way round.
Twenty-minute call. Bring the use of proceeds and a rough sense of where the business stands today; we’ll walk through which instrument or stack fits, what providers will want to see, and how long the engagement takes.