InterNex finances businesses by offering revolving lines of credit. Similar to a credit card, this is a credit line that you can spend up to a set limit. The credit line is “revolving” in the sense that after you pay back an amount you borrow, you can borrow from the line again, up to your credit limit.
InterNex bases the amount you are allowed to borrow at one time on your accounts receivable, with unpaid invoices you are owed effectively serving as collateral. Your credit limit will be set at 70% to 85% of your accounts receivable at the time you apply, according to two third-party reviewers.
Note that no matter what your credit limit is, the amount you’ll be allowed to withdraw at any given time can’t exceed your accounts receivable. For instance, if your credit limit is $500,000 but you have $350,000 coming in accounts receivable, you can withdraw $350,000 at that time.
InterNex lines of credit feature:
- Lines from $250,000 to $10 million
- 12-month terms, with an option to renew
- Annual interest rates of less than 18% (with rates as low as 7.99%, according to third-party reviewers)
In addition, third-party reviewers claim InterNex lines of credit feature:
- Origination fees of 2.25% to 4%
- Draw fees when you draw on your line of credit
- Unused line fees if you don’t use at least 50% of your line of credit
- Renewal fees if you renew your line of credit