Working capital for advertising and marketing agencies
Pay your team and deliver the next campaign while you wait for client payments.
Payroll, production and vendor bills can come due weeks before your client pays. Lucky Hand Capital offers a revolving credit line secured by eligible business receivables. If approved, you can draw against available capacity, repay according to your facility terms, and draw again as capacity becomes available.
Which receivables may qualify?
Start with outstanding invoices for delivered client work, such as campaign fees or an accepted project milestone. We review the client that owes the invoice, the payment terms and due date, and the documents that show what was agreed and delivered. A signed statement of work or purchase order can help substantiate the receivable. Tell us about any disputes, credits, overdue balances, or significant exposure to one client so we can evaluate them in context.
How a revolving line works
- Review. Tell us what you need to finance and share the receivables and documents supporting the request.
- Draw. If your facility is approved, request a draw up to the capacity available against eligible receivables under your agreement.
- Repay and draw again. Repay as client payments come in, according to your agreement. As balances are repaid and eligible receivables are added, capacity may become available for future draws.
What a Net 90 gap looks like
Illustrative example. An agency invoices $150,000 for a completed campaign on Net 90 terms. Before the invoice is due, it expects $55,000 in payroll and $35,000 in vendor bills. With $40,000 of available cash and no other collections before those costs come due, the agency has a $50,000 cash gap. If the client pays later than expected, the agency may carry that gap longer and incur additional costs. The $50,000 is a cash-planning estimate. Any financing availability would be determined through underwriting.
Estimate your agency’s cash gap with Calculator 01, Working Capital Gap. For an individual campaign, use the 13-Week Cash Flow Forecast to model exactly when the gap opens.
What to prepare
- A current receivables aging report and a list of the invoices you want reviewed.
- The underlying contract, statement of work, purchase order or milestone approval, as applicable.
- Recent financial statements and bank statements, plus any business or ownership records requested during review.
- A short explanation of how much funding you’re seeking, which costs it would cover and when those costs are due.
Start with your financing need
Tell us about your agency, your outstanding receivables and the costs you need to cover. Our team will review your inquiry and contact you about potential next steps.
Financing availability, structure, terms and approval are subject to underwriting, documentation, eligibility requirements and final approval. Submitting an inquiry does not constitute an offer or commitment to finance.