Business Working Capital — $150,000 Facility
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Catalyst Private Credit > Business Loans > Business Working Capital — $150,000 Facility
The situation
A distributor receives a larger customer order and needs to purchase inventory before collecting payment on existing invoices. The timing creates a temporary cash flow gap.
Proposed structure
An asset-based credit facility of up to $150,000, with advances tied to eligible accounts receivable and agreed lending limits. Customer collections would reduce the outstanding balance, with further borrowing subject to available collateral and facility terms.
Intended outcome
Provide working capital to purchase inventory and fulfil orders while aligning borrowing with the business's collection cycle.
At a glance
- Facility: up to $150,000 (illustrative)
- Structure: asset-based credit facility with advances tied to eligible accounts receivable
- Repayment: customer collections reduce the outstanding balance
- Further borrowing: subject to available collateral and facility terms
What the review considers
Factors assessed in a structure like this:
- Eligible accounts receivable and agreed lending limits
- The timing of inventory purchases against customer collections
- Facility terms and available collateral
- Alignment of borrowing with the collection cycle
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Scenario:
Distributor -
Status:
Illustrative example -
Category:
Business Loans -
Amount:
Up to $150,000 -
Share:
ILLUSTRATIVE FINANCING SCENARIOS
How financing could be structured. Hypothetical examples only; not completed Catalyst Private Credit transactions.
Have a transaction in mind? Share a brief overview and the date you need funding, and we can begin by identifying the information needed for a review.
