Some lenders are now creating Borrowing Base structures that rely on Recurring Revenue in support of revolving lines of credit, instead of traditional A/R and Inventory collateral backed loans. Under this form of collateral, a prospective borrower can utilize a legal, binding contract – over potentially several years – to serve their lending needs. The logic behind Recurring Revenue is this: A customer agrees to take on a set billing schedule in exchange for services to be rendered. As long as the services are indeed rendered, and the business can remain solvent, the customer will continue paying based on the originally agreed billing rate. This begs the question as to how much more risk does reliance on an ongoing recurring revenue (and therefore cash) schedule represent compared to a traditional A/R invoice?