Commercial credit line , is it right for your business? A commercial credit line is a loan from a bank that the borrower can access at any time and only take out how much it needs. A commercial credit line is basically a way for your business to be able to access funds, as it needs them, up to a certain amount previously agreed upon by you and the lender. This eliminates the possibility of over borrowing since your business only borrows what it needs.
Five Good Reasons
- A line of credit can be utilized to take advantage of a unique business opportunity or cover unexpected shortages of cash.
- In most cases, the entire credit line is available as cash, and the same APR applies to both cash and purchases.
- Interest is paid on only the accessed portion of the credit line, which is replenished as the balance is paid.
- There is the option to pay the balance in full or to extend payments over time.
- A business line of credit also provides the ready cash needed to purchase inventory or carry accounts receivable.
Combine all of the above factors with a competitive interest rate and a line of credit proves to be an excellent vehicle for cash flow management. We can help you find a great funding source for a commercial credit line for you business.