Cash Flow Loans for US Companies
Fund growth with institutional cash flow loans. Financing options designed for established businesses.
.png){kind=small}
Fund acquisitions and other inorganic growth
Funnel capital towards marketing, hires, and other expansionary initiatives
For asset-lite borrowers with consistent profitability
Refinancings and recaps
Debt availability up to 5.0x adjusted EBITDA
Non-dilutive financing that preserves equity
As Former Bankers, We Guide You Through The Entire Process of Securing A Cash Flow Loan!
Lending Parameters for Cash Flow Loans in United States
Term Length & Structure
.png){kind=small}
3–5 years
May include interest-only periods or back-loaded amortization depending on lender and borrower profile
Eligibility
Mid-market businesses with $5M+ annual revenue
Ideally $1M+ EBITDA
Established cash flow and proven operational track record
US, Canada, or Western Europe-based
Loan Amount
$2,000,000 – $50,000,000+, based on revenue, cash flow, and lender discretion
Parameter
Details / Typical Range
Underwriting Criteria
Amount and stability of EBITDA
Leverage ratios and debt service coverage
Management experience
Sponsor backing
Industry and regulatory trends
Overall business risk; lenders focus on ability to service debt from cash flow rather than collateral
Use of Funds
Working capital
Business expansion
Acquisitions
Recapitalization
Refinancing higher-cost debt
Strategic investments
Security
Senior secured
Subordinated second lien
Some lenders may require personal guarantees on smaller borrowers
Interest Rates
Varies by lender and risk profile
SOFR + 300–800
May include cash interest and PIK components
Covenants
Debt leverage ratio: senior leverage capped at 2.0–3.0x;
total leverage capped at 3.0–4.5x
Fixed charge coverage ratio (FCCR): 1.1–1.4x,
Other customary restrictions
Principal / Amortization
Equal amortization
Backloaded amortization
Interest-only period
Bullet amortization
Time to Funding
4–8 weeks for standard cash flow loan
Larger, more complex deals may require more time including due diligence and legal review
Larger / non-personal guarantee loans will require a Quality of Earnings (QoE) report
Repayment dependent on lender & structure
Typical Providers
Banks
Private credit funds
SBIC funds
Mezzanine lenders
Family offices
Process
Gather historical financial statements of borrower, including monthly income statement, balance sheet, and cash flow for last 3 years.
Forward projections for 3-5 years
Assemble business, financial, legal, regulatory, industry, customer, and supplier information into data room (large undertaking)
Conduct QoE
Negotiate terms of loan facility
Coordinate with attorneys, tax advisors, and others to close loan
What People Have Been Saying
Candidates for Cash Flow Based Loans
Cash flow based lending is designed for companies where financial strength comes from recurring revenue, predictable margins, and consistent earnings; not necessarily from hard assets.
Companies With Light or No Assets
Some companies do not carry a lot of fixed assets or inventory on hand. Others don’t don’t have much accounts receivable because their customers pay up front. This leads to a scenario where asset based lending is not feasible. A business cash flow loan is a more suitable option for liquidity.
Predictable Revenue Stream
If an enterprise can demonstrate that it has a predictable revenue stream or that it is able to maintain healthy profits even in recessionary times, it is a good fit for cash flow lending. Lenders prioritize stability of incoming profits as a source debt repayment. Rather than redirecting the cash directly to growth initiatives, a company is borrowing against its own cash + several years of future profit to fund initiatives without sacrificing equity or delaying execution. An example might be a rapidly growth fintech platform.
Service-Based, Technology, or Transactional Businesses
Service business and technology can utilize business cash flow loans because they have entered MSAs (master service agreements) or other long-term contracts with their customers, which lenders will view as a source of repayment. While hard commitments from customers (i.e. SaaS or minimum guarantee) are most coveted by lenders, other forms of re-occurring or transactional revenues will also be treated as recurring revenue.
Corporate Acquirors
When a corporation is looking to make an acquisition where the company being bought is profitable, the best way to fund the purchase is with cash flow financing that is purpose built for acquisitions—these structures give the borrower a longer repayment window and looser covenants to integrate and ramp up the acquired company after closing. Because the financial profile of the target is known, a lender can make a concrete decision on how much it will lend (rather than estimate what the potential cash flow contribution from a greenfield initiative is).
Independent Sponsors & Search Funds
Independent sponsors and search funds that raise capital on a deal-by-deal basis are excellent candidates for cash flow loans. Starting a conversation with a lender early will guide the financial sponsor’s bidding strategy. Lenders can give early reads on the amount of debt capital available to apply towards the purchase price. Final terms are hashed out after the LOI is signed with the seller. In addition, the sponsor may rely on the lender on future deals if they prove to be a good financing partner on the initial deal.
Types of Cash Flow Lending Options
The common denominator across all cash flow based lending structures is that borrowing capacity is derived from a company’s adjusted EBITDA. Accrefi connects companies with lenders offering a broad range of cash flow based lending structures, each solution designed to support growth and liquidity while maximizing ROE.
Cash Flow Based Line of Credit
Lines of credit issued by regional and local banks, credit unions, and specialty lenders for small businesses to use in a credit-card like fashion. Most companies will use this to:
-
Manage payroll
-
Fund working capital during
-
Cover short-term operational gaps
-
Finance recurring expenses
The repayment of the line of credit will typically require a minimum amount at periodic intervals, but similar to a revolver, it can be paid down and redrawn up to its maximum amount (hence the credit card like nature, but at much more attractive interest rates).
SBA & Small Business Cash Flow Loans
Small business cash flow loans can be used for acquisitions, as well as organic growth.
The SBA 7(a) loan is a specific type of small business cash flow loan that can reach a maximum of $5 million, and is repaid over 10 years. The SBA product is designed for founder-led businesses looking to grow on their own or acquire another business and need a modestly-sized loan.
Other small business cash flow loans may carry similarities to the SBA 7(a) loan but the primary difference is that they are not guaranteed by the SBA and hence underwriters are inclined to introduce parameters that mitigate risk for them (shorter repayment, higher interest rates).
Mid-Market Cash Flow Based Lending
Once a business reaches $2–3 million of annual EBITDA, it can tap into institutional cash flow lending structures that do not require personal guarantees. These structures will allow the borrower to access up to 2.0–3.0x their EBITDA. Thus a company with $3 million in annual EBITDA could borrow $6–9 million in the form of a cash flow term loan. The exact amount of course is borrower dependent.
The structure is a “term loan” which means the loan carries a final maturity of 3-5 years with periodic repayments throughout the life of the loan, engineered to allow the borrower use of cash while assuring the lender a reasonably high degree of payback certainty.
Stretch Cash Flow Solutions (aka Mezzanine)
Mezzanine loans are a subset of cash flow loans that “stretch” a company’s borrowing capacity beyond a typical midmarket cash flow loan. These loans will increase total debt up to 4.0–5.0x EBITDA. Over the years, this range has shifted based on market conditions and lender risk appetite. Because the lender is providing more capital, intrinsically increasing the risk of the capital structure, the lender will expect a higher return, which is the fundamental trade off when tapping into mezzanine financing. The higher cost may come in the form of paid-in-kind (PIK) interest, warrants, or some small equity kicker. For further reading, please see our blog on mezzanine loan.
Structural Benefits of Cash Flow Financing
Businesses choose cash flow financing because it offers certain distinct advantages over other forms of capital, which is crucial for companies operating in competitive markets up against larger players.
Borrow More Capital
For asset light companies, or those providing services and software, asset based lending may not yield a sufficient amount of capital. That is where cash flow financing can provide a significant positive delta in terms of accessible capital.
Can Be Used In Conjunction With Other Debt
When structured properly and appropriate intercreditor agreements are implemented, a cash flow loan can amplify the amount of capital a company can access. In addition, cash flow loans can be multi-tranche, with one of those tranches taking the form of a subordinated term loan or mezzanine loan (which in itself is type of cash-flow loan).
Retain 100% Ownership
Because conventional cash flow based loans do not require equity dilution, owners maintain full control over strategic decisions, growth plans, and long-term value creation.
Patient Capital
Select types of asset based credit facilities and working capital lines are limited by the dollar value of assets available at a given time. For businesses that are seasonal or cyclical, this means that the maximum credit availability can compress or expand throughout the year, potentially crimping availability when it’s needed most. Cash flow lending provides the borrower a fixed amount at the time of funding, eliminating concerns that the credit availability compresses at an inopportune time.
High Economic Value Creation
Cash flow lines are often priced similarly (or at a small spread) to lower risk credit structures like asset based lending but can be applied to a broader range of use cases that are higher ROI such as making an acquisition or greenfielding a new market entry. Thus, the economic return to shareholders is very large when cash flow loans are smartly used as patient capital.
Why Companies Work with Accrefi
Accrefi is built for the modern mid-market borrower. Our clients value access, speed, and strategic insight. Unlike lenders that offer only a single product, Accrefi expands your reach across a large segment of the banking and private credit market.
Institutional-Grade Network
With 500+ banks, private credit funds, and specialty lenders, Accrefi connects borrowers to multiple competitive options rather than limiting them to a single offer.
Strategic Capital Advisory
Our team helps craft financial narratives, prepare materials, and present your company in a way that resonates with lenders. We ensure borrowers enter the market positioned for the best possible terms.
Efficient Process Built on A Proven System
Accrefi takes the thousands of tasks needed to conduct a successful debt raise and compresses it into a series of intuitive, streamlined, and collaborative processes to reduce the time you have to spend on sourcing capital.
Non-Dilutive Financing with Full Transparency
We prioritize clarity and concise communication, ensuring you understand every term, covenant, and structure before committing.
Borrower-First Approach
Our objective is simple: secure the right capital under the right terms so your business can operate, grow, and scale without friction.
Get Started with Accrefi
Securing a cash flow loan in begins with a brief overview of your business. Once submitted, our team evaluates your financial profile, recommends the appropriate structures, and connects you with lenders positioned to offer competitive terms.
Submit your information today and get matched with lenders that align with your goals.
Frequently Asked Questions
Secure Your Cash Flow Loan in United States Today!
Strengthen liquidity, support operations, and fund growth with confidence.
Accrefi connects your business with lenders offering tailored cash flow financing structures designed for mid-market performance.
Submit your information and begin the process today.