01
The mechanics behind your credit limit, your draws, and how your line grows with you.
Aion looks at your receivables and inventory, not just your credit score, to size a line that grows with your business.
Your line is sized to a portion of your eligible receivables and inventory — not a fixed number from a formula. The stronger and more reliable your receivables, the larger your available line.
Traditional banks lend against your credit history and trailing financials. Aion lends against what’s owed to you right now. That means Aion can offer a credit limit that scales well beyond what a traditional bank or fintech lender would extend — because it’s backed by receivables you’ve already earned, not a score or a snapshot from months ago.
Your line of credit and your banking run in one system, so your receivables, payments, and available capital all live in the same place. Because Aion can see your business in real time, it can lend against what’s happening, and skip the manual reporting that usually comes with an asset-based line.
For most clients, this also consolidates several separate tools — a bank, an AR/AP system, and manual reconciliation between them — into one platform.
Once your line is approved, draw funds whenever you need them — covering payroll while a large invoice is outstanding, buying inventory ahead of a big order, funding a production run.
You’re charged on what you’ve drawn, for the days it’s outstanding plus a monthly facility fee (typically about 0.1% of your approved line). Most clients pay an average effective cost of ~2%, well below competitor rates.
Because your receivables flow through Aion, payments are applied automatically as invoices clear — no separate repayment step. Your available capital updates as you invoice, so the more you grow, the more you can access, up to your approved limit.
Aion underwrites against a live read of your receivables, not a single snapshot in time. If a customer pays late or volume dips for a month or two, Aion can still see that payments are coming — clients tell us this is one of the things that sets Aion apart from a lender that pulls back the moment things look uneven.
A logistics company with $4M in annual revenue and consistent 30-day receivables moves its banking to Aion. Based on its outstanding invoices, Aion approves a $1.2M line.
Because the mechanics are unfamiliar, it’s easy to default to comparing this to something you already know. Here’s the short version of how it’s different:
| Alternative | Aion | |
|---|---|---|
| Invoice factoring | You sell your invoices outright, and a third party collects directly from your customers. | Your invoices back the credit line, but you keep the customer relationship. Nothing changes about how your customers pay you. |
| Merchant cash advance | A lump sum upfront, repaid through a fixed daily or weekly cut of sales — regardless of how much you actually needed. | Draw only what you need. Repayment happens automatically as invoices clear, not on a fixed schedule disconnected from your cash flow. |
| Traditional bank line of credit | A fixed limit, periodic reviews, and underwriting that can take weeks or months — plus field exams and manual reporting. | A limit that grows with your receivables, underwriting through one connected platform, and no manual reporting to keep the line current. |
For the full side-by-side comparison, including cost and approval timelines, see the comparison table on the main lending page.
Aion’s underwriting depends on seeing your receivables and cash flow in real time. That’s only possible if your banking and lending live in the same system — it’s what allows your line to grow automatically as your receivables grow, with no manual reporting required.
You initiate a draw through the platform when you need it. Repayment happens automatically when the corresponding receivables clear — there’s no separate invoice or repayment step for you to manage.
Your credit limit is the maximum based on your eligible receivables and inventory. Your available capital is what’s left to draw at any moment — it decreases as you draw and increases as invoices clear, up to your approved limit.
Aion looks at your receivables as a whole, not any single invoice in isolation. A slow payment from one customer doesn’t automatically reduce your available capital — Aion can see that the payment is still coming.
Now that you know how it works, find out what it looks like for your business.