$1MM Invoice Factoring at Single-Digit Rates

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.

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

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

Facility Size: $1,000,000 (expanded to $1.5MM within 2 months as sales grew)

Advance Rate: 92% on eligible receivables

Invoice Fee: 0.25% (25 basis points) on new incoming invoices

Interest Rate: Prime + 2% on funds drawn

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.

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.

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 need flexible capital that scales with your sales

Why Banks Should Embrace This Too