What is AR Loan/Line?

Have you ever used a credit card? Well this is a method of AR finance! If you think about it the business that accepted your card pays a discount to receive their money quickly. Well Large and small entities all over the world use this same method leveraging their AR to receive a loan advance or credit line advance quickly against their Accounts Receivable!

Despite the current theme that AR finance is more expensive than bank loans or lines then we recommend considering the time value of money and what that means to your business and being able to effectively compete by offering terms to clients without cash flow strain! In addition when you read the small print from BANKS when a business signs a loan or line facility document then they have just committed to a BLANKET LIEN on all company ASSETS. AR finance ONLY files a UCC 1 on the accounts receivable.

Its traditional term is called factoring. Which has always been labeled ALTERNATIVE financing. However its much more traditional than you think. Large name brand companies and small companies alike have been and use this method as a current way to enhance their cash position and time value of money!

Having trouble getting a loan or line of credit for your business? Consider leveraging your accounts receivable instead.

How does it Work?

Omni implements a cash advance loan or line facility based on the total value of the invoices or historical history (trend) of your AR. Your business will typically receive 80-90 percent of the invoice or trend line value upfront. Then you receive the remaining value once the invoice has been paid, minus a fee for the advance and maintaining the account. This fee can be structured in any number of ways, and Omni works with each client on its independent needs and circumstances.

To qualify your company must satisfy two basic conditions. First, you should have no existing primary liens on your accounts receivable.

Your customers must also be creditworthy. Your company's/principals creditworthiness will not the primary focus to approve or deny your account. Instead, Omni will focus who is paying the AR.

It is easy to get started!

1. Submit your current A/R-A/P aging report with current interim statements.
2. Provide sample copies of current client invoices.
3. Provide copies of organization documents. (Articles of Inc./Organization/DBA Filing)