Case Study
$1MM Invoice Factoring Revolver at Single-Digit Rates?!
How AR Financing Unlocked Strategic Growth Beyond the Bank Line
Michael Kodinsky
Founder & CEO
August 12, 2025
Here's a truth about business that doesn't always show up on a balance sheet: you can be growing, profitable in operations, and completely unable to qualify for traditional financing.
Why? Because last year's tax return might show a loss. Or your bank line is maxed out. Or your growth is too fast for conventional lenders to understand.
But there's an asset sitting right there on your balance sheet that traditional lenders overlook. We don't.
The Paradox of Growing Too Fast
A healthcare supply manufacturer in central Florida was in an enviable position. They were growing year over year. Sales were solid. Customers were paying. The business model worked.
But they had a problem. Their largest customer represented 80–90% of their incoming orders each month, and that customer had announced a major expansion project. The opportunity was massive.
They went to their bank for a growth line. They approached multiple banks. The answer was the same: your last tax return shows a loss. We can't help you.
"You can't pay vendor bills with open receivables, but AR financing done right will pay for steady growth."
The irony was stark: a growing company with strong customers, consistent orders, and real revenue was being told no because of accounting entries, not business fundamentals.
The Invoices Tell the Real Story
Here's what traditional lenders miss: invoices are assets.
When a customer orders $100,000 in supplies and that order is shipped, an invoice is created. That invoice represents real money that's owed to the company. It's not a maybe. It's not a projection. It's a contractual obligation from a creditworthy customer.
Banks look at tax returns and P&Ls. We look at invoices. And that healthcare supply manufacturer's invoices told a completely different story than their tax return.
One of their competing bankers understood this. They referred the manufacturer to Serve Funding. And within 3 weeks, we had them approved and funded.
The Structure
Let's be clear: this pricing is better than most bank term loans. And unlike a term loan, this is a revolving facility—it grows with the business. As invoices come in, capital is available. As those invoices are paid, the facility replenishes itself.
AR Financing Isn't a Last Resort—It's Smart Capital Planning
This is the mindset shift we're trying to create in the market. Accounts Receivable financing isn't something you do when you're desperate. It's something you do when you're smart.
Here's why this healthcare supply manufacturer's situation is actually textbook ideal for AR financing:
Strong Sales with Long Payment Cycles
Their customers pay in 30–90 days. But the invoices are real from day one. Why wait for cash flow when you've already earned it?
Growth That Outpaces Traditional Lending
Banks are slow to adapt to rapid growth. AR facilities scale automatically—the more you sell, the more you can borrow. It grows with you.
Flexible, Selective Funding
You don't have to use the whole line. Use it when you need it. It's working capital when you need it most—during growth surges or seasonal spikes.
No Accumulated Debt
A term loan sits on your balance sheet. An AR facility is self-liquidating—as your customers pay, the borrowing goes away automatically.
The healthcare supply manufacturer didn't have a problem. They had a business model that traditional lenders couldn't see. AR financing was the answer.
Is AR Financing Right for Your Situation?
If any of these sound familiar, AR financing might be exactly what you need:
- You have strong sales but slow-paying customers (30–90 days)
- You need payroll covered before contract payment arrives
- You won a big order but can't fund materials until invoices clear
- You're in staffing, construction, manufacturing, healthcare, or government contracting
- You've maxed your bank line but you're still growing
- Your last tax return didn't tell the real story of your business
- You need flexible capital that scales with your sales
These aren't signs of a struggling company. These are signs of a growing company that needs strategic capital.
Why Banks Should Embrace This Too
If you're a banker reading this, think about your clients who are hitting your credit box limits. The ones whose tax returns don't match their revenue. The ones growing so fast you can't keep up with their needs.
Introducing them to AR financing isn't admitting defeat. It's actually strengthening your relationship. You become the advisor who has solutions for every situation. You're not the person who says "no"—you're the person who says "I know someone who can help."
The banker who referred this healthcare supply manufacturer to us? They're now part of that company's expansion story. The manufacturer is grateful. The banker is a hero. And we get to deploy capital that makes a difference.
That's the ecosystem we're building.
Your Invoices Are Assets. Let's Activate Them.
If you're a founder wondering how to fuel growth without hitting the bank line ceiling. If you're a banker with clients whose situations don't fit traditional boxes. If you're someone who understands that invoices represent real value that shouldn't sit unpaid for 90 days—let's talk.
AR financing done right isn't expensive. It's strategic. And it's exactly what your growing business deserves.
Let's keep growing together.
