LINES OF CREDIT

A line of credit is money you can draw when you need it and repay when you have it. There is no lump sum, and no payment on cash you never touched. You use it for the s

LET'S BUILD YOUR FUTURE

OVERVIEW

What Is a Line of Credit?

A line of credit gives you an approved limit. You draw against it, you pay interest only on what you drew, and as you repay, the limit comes back. That is what revolving means.

A term loan funds once and amortizes on a set schedule whether you needed the money that month or not. A line is built for repeated use. That is why it fits variable operating costs and a term loan does not.

A LINE OF CREDIT EARNS ITS KEEP WHEN THE NEED REPEATS

Common Use Cases

Smoothing month-to-month cash flow swings

Funding a seasonal ramp

Covering an expense you did not see coming

Bridging the gap between when you get paid and when you pay out

Keeping capital available without carrying term debt

HOW YOUR LINE IS BUILT DEPENDS ON WHAT BACKS IT

Types of Line of Credit Solutions

BUSINESS LINES OF CREDIT

A business line of credit is unsecured or lightly secured, and sized on your financials. It covers routine operating costs and variable spend. Limits run smaller than asset-based options because there is less behind them.

ASSET-BASED LINES OF CREDIT

An asset-based line is secured by your assets, which could be equipment, receivables or inventory. It’s typically sized as a percentage of the assets, so the limit moves with your borrowing base. Advance rates run from 50 to 85 percent on lender and eligible assets.

REVOLVING CREDIT FACILITIES

A revolving facility is a larger, longer-dated line for businesses with predictable cycles. You draw and repay freely, subject to covenants and an unused-line fee on the room you are not using.

Key Considerations Before Applying

The flexibility is also the risk. A line drawn to the limit and never paid down is a term loan with a worse rate, and lenders read it that way at renewal. Watch your utilization.

Size the line to the swing, not the ceiling. A limit bigger than you need invites drawing on it for things that should be funded another way, and you pay for the room you leave sitting there.

LET'S BUILD YOUR FUTURE

HOW DOES IT WORK?

How We Help

We look at how your cash actually moves before we recommend a line, because plenty of businesses that ask for one need a term loan or a factoring facility instead. If a line is right, we size it against your real swings and take it to lenders who work with your collateral and your industry.

We stay involved after closing. Renewal terms are set by how you used the line, so that is worth getting right from the first draw.

WHAT’S NEXT?

Contact Us

A line of credit rewards discipline. Size it right, draw it for profitable uses, and pay it down as soon as you can. Send us your cash flow and we will tell you whether a line is the answer.

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