Commercial lines of credit also known as operating loans, is when a company gives you a certain credit limit that you can draw from whenever your business is in need of capital. To start out, you and the lender will agree upon a maximum amount based on several factors such as the credit worthiness and revenue of your company. Then you can just borrow any amount of money, whenever you need it, as long as you dont exceed your limit. This prevents the risk of overborrowing since you only borrow what you need at the time. Although the rates are generally high with this type of funding, there can be many great benefits in having capital at your disposal such as with a commercial line of credit.
Take advantage of a unique business opportunity or cover unexpected shortages of cash? An operating loan gives you immediate access to cash, with no annual review and the option to pay over time.
A commercial credit line can give you the financial freedom to bring your business ideas to life. Typically, a revolving line of credit can be accessed using provided checks, which are welcome everywhere your business checks are presently accepted.
- Cash Flow
Your entire credit line is available as cash, and the same APR generally applies to both cash and purchases. Best of all, you only pay interest on the portion of the line you access.
We can help you find the perfect source of commercial lines of credit to meet the needs of your business.