Collateral is key to securing a Parabilis loan. Billed Accounts Receivable is the most secure form of collateral. Small business government contractors can list their invoices, aggregate them, and borrow against the total in any amount up to 90%.
Here’s how it works:
- You do great work fulfilling a contract.
- You bill the customer which now owes you money.
- The customer will pay you depending on the terms, usually 30-45 days.
- In the interim, you can borrow up to 90% of the value of that invoice.
- You can aggregate all your invoices and borrow any amount up to 90% of the total.
These loans are incredibly valuable for a small business owner who needs to fund working capital while growing their company. A Parabilis line of credit:
- Keep staff at full pay
- Meet monthly expenses
- Hire additional staff
- Add contract headcount
- Continue meeting obligations on other contracts
What’s great about borrowing against billed AR is that it can be used for more than just getting through a gap. Our borrowers use our lines of credit to fund payroll, support growth, hire additional staff, cover operating expenses, and pay other bills on time.
A Parabilis line of credit is a proven way to help small business contractors get through tough times, don’t require a long-term commitment and there are no early termination fees. Give us a call or shoot us an e-mail today to start the application process!
Contact us today to learn more.