Capital Reference · 42 Entries

    Capital Glossary

    A working reference for the capital structures we evaluate. Written for operators, not for lenders. Filter by industry, or browse the full set.

    Factoring→

    Medical Receivables Financing

    A working-capital structure that advances cash against unpaid insurance, Medicare, Medicaid, or patient-pay claims rather than waiting 30 to 120 days for payor remittance.

    Factoring→

    Healthcare Factoring

    The sale of healthcare receivables, at a discount, in exchange for immediate working capital. A subset of medical receivables financing structured as a true purchase of claims.

    Factoring→

    Staffing Factoring

    A working-capital structure built around the weekly payroll cycle of staffing firms, advancing cash against invoices issued to end clients so payroll funds before clients pay.

    Factoring→

    Medical Staffing Factoring

    Staffing factoring tailored to medical staffing agencies, accounting for hospital, MSP, and VMS payment cycles that often extend well beyond commercial staffing norms.

    Factoring→

    Payroll Funding

    A working-capital facility used specifically to cover payroll between the date wages are paid and the date client invoices are collected. Most common in staffing, but used across labor-intensive industries.

    Asset-Based→

    Accounts Receivable Financing

    A general category of working-capital facilities secured by, or structured as a sale of, a company's unpaid invoices. Includes factoring, AR lines of credit, and asset-based lending against receivables.

    Asset-Based→

    Asset-Based Lending (ABL)

    A senior secured lending structure where advances are sized against a borrowing base of receivables, inventory, equipment, or real estate, governed by a formal borrowing-base certificate.

    Structure & Terms→

    Borrowing Base

    The formula a lender uses to determine the maximum amount available under an asset-based facility, calculated by applying advance rates to eligible collateral.

    Structure & Terms→

    Advance Rate

    The percentage of eligible collateral a lender or factor will fund. Determines, more than headline pricing, how much working capital a facility actually delivers.

    Factoring→

    Factoring

    The sale of accounts receivable to a third-party funder at a discount, in exchange for immediate cash. Distinct from a loan, since the receivable is sold rather than pledged.

    Bridge & Short-Term→

    Bridge Financing

    Short-term capital that funds a defined gap between today and a known future event, such as a refinance, a contract close, a sale, or seasonal collection.

    Bridge & Short-Term→

    Merchant Cash Advance (MCA)

    A short-term capital product structured as the purchase of future receivables or sales, repaid via fixed daily or weekly debits. High-cost, high-speed, and frequently misapplied.

    Bridge & Short-Term→

    Revenue-Based Financing

    Capital repaid as a fixed percentage of monthly revenue rather than via a fixed amortization schedule. Sized to the company's actual cash conversion, not its forecast.

    Conventional→

    SBA 7(a) Loan

    The Small Business Administration's flagship guaranteed loan program. Used for working capital, equipment, real estate, partner buyouts, and acquisitions. The benchmark conventional structure for most growing operators.

    Conventional→

    Equipment Financing

    Capital structured against the value of specific equipment, either as a loan secured by the equipment or as a lease. Used for acquisitions, replacements, and capacity expansion.

    Bridge & Short-Term→

    Purchase Order Financing

    Capital that funds the cost of fulfilling a confirmed customer purchase order, typically paying suppliers directly so the operator can deliver a contract it could not otherwise carry.

    Factoring→

    Freight Factoring

    A working-capital structure that advances cash against freight invoices the same day a load is delivered, instead of waiting 30 to 90 days for a broker or shipper to pay.

    Factoring→

    Fuel Advance Program

    A same-day cash advance against a load in transit, paid at pickup rather than delivery, so the driver can cover fuel and tolls without floating the cost out of pocket.

    Factoring→

    Non-Recourse Freight Factoring

    A freight factoring structure where the factor absorbs credit losses if an approved broker or shipper fails to pay, in exchange for a higher discount rate.

    Factoring→

    Owner-Operator Factoring

    Freight factoring sized for single-truck and small-fleet carriers, with no minimum volume requirements and same-day funding on individual loads.

    Asset-Based→

    Transportation Line of Credit

    A revolving credit facility for established carriers and brokers, sized against receivables, equipment, or both, used for fuel, payroll, and growth capital.

    Factoring→

    Construction Factoring

    Receivables financing structured for general contractors and subcontractors, accounting for progress billing, retainage, and pay-when-paid clauses common to the trade.

    Asset-Based→

    Progress Billing Financing

    Working capital advanced against approved AIA progress billings on active construction projects, so contractors can fund the next phase before the current one is paid.

    Factoring→

    Subcontractor Factoring

    Receivables financing for trade subcontractors, advancing cash against approved pay applications to general contractors instead of waiting on the GC-to-owner payment chain.

    Bridge & Short-Term→

    Mobilization Financing

    Short-term capital that funds the upfront cost of starting a construction project, including materials, equipment staging, and initial labor, before the first pay application is approved.

    Asset-Based→

    Supply Chain Financing

    A buyer-led structure that lets suppliers get paid early by a funder at the buyer's credit rate, while the buyer keeps its standard payment terms intact.

    Asset-Based→

    Inventory Financing

    A lending structure secured by finished goods, raw materials, or work-in-process inventory, used to fund stocking cycles, seasonal builds, and large customer orders.

    Asset-Based→

    Work-in-Process Financing

    Capital advanced against partially completed inventory still on the production floor, used by manufacturers with long build cycles and high in-process value.

    Bridge & Short-Term→

    Manufacturing Bridge Loan

    Short-term capital for manufacturers funding a specific event, such as a large purchase order, an equipment install, a facility expansion, or a refinance.

    Factoring→

    Wholesale Factoring

    Receivables financing for wholesalers and distributors selling to retailers, big-box accounts, and other commercial buyers on net 30 to net 90 terms.

    Structure & Terms→

    Trade Credit Insurance

    An insurance policy that protects a seller against non-payment by commercial customers, often used to support larger credit lines and unlock more aggressive sales terms.

    Bridge & Short-Term→

    Import Financing

    Capital structured around the cycle of importing goods, covering the gap between paying overseas suppliers and collecting from domestic customers.

    Asset-Based→

    Distribution Line of Credit

    A revolving credit facility for distributors, sized against receivables and inventory, used to smooth seasonal swings and fund growth into new accounts.

    Conventional→

    Restaurant Equipment Financing

    Capital structured against the value of kitchen, refrigeration, POS, and front-of-house equipment, used for build-outs, replacements, and second-location expansion.

    Bridge & Short-Term→

    Hospitality Bridge Loan

    Short-term capital for restaurants, hotels, and hospitality groups funding a renovation, acquisition, refinance, or seasonal cash window.

    Bridge & Short-Term→

    Restaurant Working Capital

    Short-term capital sized to the daily cash conversion of restaurant operations, used for inventory, payroll, marketing pushes, and seasonal coverage.

    Asset-Based→

    Equipment Sale-Leaseback

    A structure where an operator sells owned equipment to a funder and immediately leases it back, converting a fixed asset into working capital while keeping the equipment in use.

    Asset-Based→

    Restaurant Line of Credit

    A revolving facility for established restaurant groups and operators, used for inventory cycles, payroll smoothing, and opportunistic spend without committing to a term structure.

    Factoring→

    DME Financing

    Working-capital financing for durable medical equipment suppliers, advancing cash against Medicare, Medicaid, and commercial insurance claims for equipment already delivered.

    Factoring→

    Behavioral Health Working Capital

    Capital structured for behavioral health, addiction treatment, and mental health providers, accounting for the payor mix and authorization cycles unique to the space.

    Factoring→

    Allied Health Staffing Factoring

    Staffing factoring built for agencies placing allied health professionals into hospitals, health systems, and managed service providers on extended payment cycles.

    Factoring→

    IT Staffing Factoring

    Staffing factoring sized for IT and technology staffing firms, accounting for high bill rates, large enterprise customers, and VMS-driven payment cycles.

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