New revolving receivable-based facility fills critical lending gap for mid-market companies facing limited ABL and bank loan options
1st Commercial Credit, LLC, a national leader in accounts receivable financing, trade payable finance, and invoice factoring, announces the launch of its new Ledger Lines program—providing revolving credit facilities of up to $20 million, backed by receivables and tailored for high-growth businesses.
With Ledger Lines, businesses generating at least $3 million in monthly invoices can access up to 90% of receivable value as working capital. The structure avoids traditional debt by documenting the facility as a continuing receivable purchase, providing fast and flexible funding without complex loan covenants.
“Ledger Lines are designed for companies that are too big for traditional factoring but not well-served by bank lending or rigid ABL structures,” said Raul Esqueda, President of 1st Commercial Credit. “By working in partnership with banks and advisors, we’re helping companies replace high-cost debt and unlock working capital without disrupting their existing financial relationships.”
Key Benefits of the Ledger Lines Program:
- Credit lines from $3 million to $20 million
- Up to 90% advance on eligible receivables
- Funding in as little as 3 weeks
- No traditional debt added to the balance sheet
- Banks may subordinate receivables while maintaining existing term loans
- Optional credit insurance to reduce risk
- Available to industries such as manufacturing, staffing, transportation, security, and importers
The company reports growing demand from investment bankers, restructuring advisors, and bank workout departments who are turning to 1st Commercial Credit to support clients with cash flow constraints, MCA obligations, or seasonal volatility. Ledger Lines enables a seamless transition from high-cost loans and unscalable ABL products to receivables-based funding that grows with the business.
To qualify, companies must maintain up-to-date financials, demonstrate profitability, and have a Chief Financial Officer overseeing internal operations. A Deposit Account Control Agreement (DACA) is also required to control receivable proceeds.
Solving the $3M–$10M ABL Gap
With many traditional asset-based lenders pulling back due to rising defaults and low margins, businesses in the $3M–$10M range are often left with few viable financing options. According to Esqueda, the complexity and cost of underwriting ABL deals at this size often exceed the returns.
“Ledger Lines provide a scalable alternative to ABL,” said Esqueda. “We remove the bottlenecks of traditional credit underwriting and give clients a funding solution that adjusts with their receivable base—not their collateral mix.”
Backed by Technology and Trade Credit Protection
Ledger Lines builds on 1st Commercial Credit’s $6 billion funding milestone achieved in 2024, and its $200 million in receivables insurance coverage. The program is powered by the company’s proprietary MyBizPad® platform, which automates funding requests, and real-time receivables tracking—ensuring operational efficiency and transparency for clients.
