Sales grow before collections arrive
A larger order may require inventory, labor, and freight now, even if the customer pays 30 to 90 days after delivery.
BORROWING NEED
Working Capital
Growing sales should not leave you struggling to cover payroll, inventory, or everyday expenses. Explore working capital financing aligned with when your business pays out cash and collects it.
Understanding working capital
Working capital pays for the ordinary costs of doing business while cash is tied up in receivables, inventory, or work in progress. A profitable company can still feel a cash squeeze when it pays suppliers and employees weeks before its customers pay.
The first question is whether the gap reverses as customers pay, or whether growth has created a lasting need for more capital. That difference affects the amount to request, the repayment plan, and whether a revolving facility or term financing makes more sense.
When this need comes up
Seasonal demand shifts cash needs
The business builds stock or adds staff before its busy season, then expects the balance to come down as seasonal sales convert to cash.
A cash gap becomes permanent
If receivables and inventory stay higher as the company grows, a line that never pays down may signal a longer-term capital need.
How financing may be structured
The right structure depends on how long the need lasts, when cash returns, and what the borrower can support.
Revolving line of credit
Often fits a recurring cycle of draws and repayments. Availability, cleanup requirements, and renewal terms matter as much as the stated limit.
Term financing
May fit a lasting investment in operating cash when the need will not reverse within a normal cycle. The payment must fit ongoing cash flow.
Asset-based or specialty facility
May base availability on eligible receivables, inventory, or contracts. Advance rates, customer concentrations, and reporting requirements shape usable proceeds.
What lenders will want to understand
A lender will look for a credible path from spending to billing to collection. It may compare the requested limit with historical cash flow, receivable aging, inventory movement, existing debt, and the expected high and low points of borrowing.
- Cash conversion cycle and historical cash flow
- Receivables quality, inventory turnover and borrowing base
- Existing debt, leverage and repayment capacity
Questions to address early
A line that never comes down
The lender may question whether a short-term facility is funding a permanent need. Alliance can separate the recurring cycle from the lasting capital requirement.
Growth that strains repayment
Higher sales do not automatically mean more available cash. Margin, collections, and supplier terms need to support the forecast.
Collateral that is less available than expected
Old receivables, customer concentration, and slow-moving inventory may reduce a borrowing base. The useful limit can be lower than the headline facility amount.
Documents to start the discussion
A monthly cash-flow forecast, aging reports, and a clear explanation of the cash conversion cycle help connect the requested amount to actual operating needs.
- Financial statements and tax returns
- Accounts receivable and payable aging
- Inventory reports, debt schedule and projections
The final checklist depends on the lender, transaction, and requested structure.
How Alliance helps
When payroll and supplier payments arrive before customer cash, another round of lender questions takes time you need to run the business. Alliance traces the cash gap, separates seasonal borrowing from a lasting capital need, and prepares the numbers and explanation before outreach.
We target sources suited to your cycle and compare usable proceeds, cost, and reporting demands. You get a clearer view of your options and one team to coordinate lender questions while you focus on operations.
Explore potential financing sources
A source is worth comparing only when its underwriting approach, terms, and obligations fit the specific request.
Conventional Bank Financing
Banks typically pair a financing request with a full review of cash flow, collateral, liquidity and the guarantor. Terms depend on the transaction and the lender.
Explore ↗Government-Guaranteed Financing
A government guarantee can help a participating lender support a transaction that needs a different risk structure. The lender still underwrites the request, and program rules change.
Explore ↗Asset-Based & Specialty Financing
These facilities put more weight on identified assets, contracts or receivables and how they convert to cash.
Explore ↗Private Market Debt
Non-bank lenders may underwrite a transaction with a different view of collateral, cash flow, speed or a defined transition plan.
Explore ↗Related borrowing needs
Expansion & Growth
New contracts, locations, and customers bring opportunity, but expenses often arrive before revenue. Explore growth financing built around the cash your expansion needs.
Explore ↗Equipment & CapEx
Outdated equipment or limited capacity should not keep your business from taking the next step. Explore equipment financing and capital expenditure funding while preserving cash for operations.
Explore ↗LET’S TALK
Talk through your working capital need.
Tell Alliance what you want to accomplish, the amount and timing, and what has made the request difficult. We will discuss possible next steps.