InterNex Capital Review

InterNex Capital is an online lender that provides business lines of credit that are secured by a borrower’s accounts receivable. Because they’ll require borrowers to make at least $1 million in annual revenue and have at least $100,000 in their accounts receivable, they don’t typically give small business loans to smaller-scale businesses. That said, if you meet these requirements, this line of credit might be your most affordable option.

Within their accounts receivable financing options, Internex Capital offers three products: VelocityLOC, VelocityFlex, and VelocityStretch. Velocity is the online platform that InterNex uses to allow borrowers to manage their accounts receivable and draw funds. With their standard line of credit product, you receive an advance for any invoice your business issues. The Flex product, on the other hand, lets you choose which invoices you sell, and Stretch is used in conjunction with one of the previous two products as a short-term advance of up to $1 million.

To be eligible for InterNex Capital’s financing products, you’ll need to be a U.S.-based B2B business with at least $100,000 outstanding in accounts receivable. While you don’t need to be profitable, you do need between $1 million and $75 million in annual revenue, which is significantly more than most small businesses are grossing. 

You’ll also need a business bank account—while InterNex Capital does not require a minimum average bank balance, they do require that you have a least one monthly deposit. They also prefer that borrowers have used accounting software for at least six months.

If you’ve filed for personal bankruptcy in the past, InterNex Capital requires that at least three years have passed since discharge.

Also keep in mind that InterNex Capital does not work with businesses:

• In a B2C industry
• In North Dakota, South Dakota, Vermont, or Nevada
• That operate as sole-proprietorships or nonprofits
• That provide federal government services or public health care

• Last 3 months of business bank statements
• Debt schedule
• A/R aging report
• Financial statements (i.e. balance sheet, profit and loss statement)

Let’s now take a closer look at the application process with InterNex Capital, as well as the underwriting and post-funding processes.

InterNex Capital offers revolving lines of credit that your outstanding accounts receivables—or your unpaid invoices—secure. Because your ability to pay InterNex Capital back is dependent upon your customers actually paying your invoices, InterNex will consider both your eligibility as a borrower and your invoiced customers’ repayment habits.

So, once you’ve applied, InterNex Capital will underwrite your line of credit by looking at all the documentation you provided and review your client list to see what your customers’ borrowing habits are.

The next step in the InterNex Capital underwriting process will be a phone call in which they will review your application, go through the intended use of the funds, and discuss your eligibility for the line of credit. They will also perform a soft pull of your credit report, which won’t ding your score. 

InterNex Capital will then take 48 hours at most to review your line of credit application during underwriting, and once you’re approved for an offer and accept it, you’ll get the capital in your bank account in another few days after that. According to their website, it takes about five days to completely set up your account. As a reminder, they use an online platform, Velocity, so you can track and manage your finances. If you don’t receive an offer from InterNex Capital, you will be able to re-apply for a line of credit from then again in three months.

After you fund with InterNex Capital, you’ll get access to their client portal, Velocity, where you can check on the progress of any repayments you’re making toward your line of credit, as well as manage your accounts receivable. InterNex Capital will also provide statements of your monthly activity, and if you want to discuss your loan, you’ll be able to contact an InterNex account manager with any questions you might have.

When InterNex Capital extends your business a line of credit, they’ll set a maximum credit limit. Say, for instance, that credit limit is set at $750,000—this means the maximum amount that you’ll ever be able to draw from your line of credit is $750,000. But InterNex Capital will only allow borrowers to draw a certain amount of capital if their accounts receivable can support the draw.  

So, if you want to draw $600,000 from that same InterNex line of credit, the value of your outstanding accounts receivables must be at least equal to $600,000 for InterNex to approve the draw—you couldn’t draw the full $750,000 with only $600,000 in collateral to support the draw.

When you do draw on your InterNex line of credit, your repayments will be due the first business day of every month. Down the line, if you would like to increase your line of credit, InterNex Capital can do so if you have the accounts receivable on hand to support it.

InterNex Capital does not report to the personal business credit bureaus, but they do report to the business credit bureaus, so as you make on-time payments you will be building your business credit at the same time.

As is the case with any self-securing form of financing, your accounts receivable will secure the loan so you won’t need to provide additional collateral. 

However, InterNex Capital charges a minimum origination fee of 2.25% and a maximum origination fee of 4%. InterNex’s median origination fee is 3%. InterNex also charges a draw fee every time you draw on your line of credit. 

Be sure to read your loan agreement in full before accepting the offer so you’re aware of all the fees associated with this line of credit.

InterNex Capital is headquartered in Harrison, New York, and can be reached by submitting a short form directly on their website, calling their customer service line, or emailing contact@internexcapital.com.

Customer reviews for InterNex Capital are resoundingly positive. Between the fast application and funding process, responsive sales reps and customer service, and ease of the online customer portal, business owners only have positive things to say about their experience with InterNex Capital.

InterNex Capital is not in Fundera’s Lender Network. The Fundera team carefully vets all of the lenders in our network, and have determined that InterNex Capital either doesn’t have the technology to work with Fundera or does not offer a financing product that competes with the other lenders in its product class. We suggest considering another lender in this product class.

See if you qualify for similar products in Fundera’s Lender Network.