Working Capital – A/R Factoring, Asset-Based Lending or Term Loan?

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July 02, 2025

by a searcher from New York University in New York, NY, USA

I’m in the final stages of acquiring an electrical contracting business in New York. While I have the capital lined up to close, I’ll need access to working capital to support day-to-day operations and fuel growth. I’m exploring a few different financing options, including A/R factoring, asset-based lending against equipment, or potentially a traditional line of credit. The business has a healthy accounts receivable balance and a fleet of vehicles and equipment that might be useful as collateral. Has anyone gone through this process before? I’d appreciate any advice on structuring post-close working capital, lenders you’d recommend, or lessons learned from your own experience. Thanks in advance!
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Reply by a professional
from Emory University in New York, NY, USA
I've been through this numerous times working with all three depending on client needs. Would be happy to share my thoughts. redacted ###-###-#### phone
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Reply by a searcher
from George Washington University in Armonk, NY 10504, USA
Good afternoon Marvin, i have a close friend who owns a receivable finance and equipment finance business who might be very helpful in helping you explore and understand the most efficient cost of capital. Happy to discuss- let me know if i can help.. redacted
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