Compare C2FO to a traditional bank line of credit

Find your customers on C2FO

Application Process Complex
Legal review needed Yes
Approval Must qualify, may take months
Requirements Solid financial ratios, good trends
Collateral Blanket lien – 1st position UCC
Guaranties Almost always
Advance Rates 75%-80% of eligible
Cost Prime -1% to prime +4%
Fees Usually .5% to 1% per year
Covenants Current ratios, min TNW, debt coverage ratios
Reporting Requirements Monthly BBC, annual/ interim financials
Borrowing Max Limit set by bank
Recourse Not applicable
Not required, available on demand when needed
Approved buyer invoices are all you need
100% of awarded invoices, net of discount
Name Your Rate™
Constrained only by invoices loaded and price offered
Not applicable

What to consider with a traditional bank line of credit:

  • Third-party financial intermediaries require risk-based underwriting, complicated paperwork, higher rates, and recurring fees
  • Lending requires collateral and guarantees
  • Lines of credit can include non-use fees if you do not borrow funds

A funding option like C2FO works with your line of credit:

  • A lower cost capital without fees helps you pay down higher-cost debt
  • Accelerated on-demand payments from your customers on invoices you choose
  • Access additional working capital during temporary or seasonal peaks without adding to your debt
  • A secondary finance option leaves more capacity on your bank line of credit for funding longer-term needs

The working capital guide:

Learn about funding options

For small and midsized businesses


+1 866.463.6565

  Talk to Us