How to Use Your Receivables as Collateral for Growth

Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance · Jun 4, 2026 · 8m · transcript

Small business owners often think of unpaid invoices as a liability. But in this episode, Lucas and Luna explore a powerful alternative: using your receivables as collateral to secure a revolving credit line that grows as your sales grow. They break down how a receivables-backed line of credit works, the difference from factoring, the typical costs (LIBOR plus 2 to 5 percent, now keyed to SOFR plus a spread), and a concrete example: a $2 million annual revenue business with $300,000 in average receivables can unlock a $225,000 credit line. They also discuss the key metrics lenders care about…