LINES OF CREDIT

A line of credit lets you borrow what you need, when you need it. Pay down the balance to unlock more borrowing power. Connect with our lender network to see if a secured or unsecured line is right for your business.

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What is a Line of Credit?

A line of credit, or LOC, is a lot like a credit card. Your line has an approved credit limit that you can borrow from whenever you like. Interest is only charged on the balance you carry and payments into the account release more credit. An LOC, however, typically has a lower interest rate than a business credit card and a higher maximum credit limit. LOCs are particularly useful when your business experiences ups and downs in regular income.

Unlike a traditional loan, Lines of Credit do not limit your use of funds to just one project. If you take out a real estate loan, you must use the funds for real estate expenses. Construction and equipment loans have to be used for their respective purposes too. Lines of Credit are flexible financing that can be used to bring in materials, hire consultants, pay taxes, and more. Let us help you explore the variety of credit options available from our broad lender network.

Secured

Lenders offer higher credit limits on secured lines of credit. You can use real estate, equipment, and other assets to secure a line. These become collateral on the loan.

Unsecured

Though harder to qualify for, an unsecured line of credit can give you the borrowing room you need without putting your businesses assets on the line.

Non-Revolving

This type of line allows you to borrow money when you need it and pay down the balance like other lines. Unlike other lines, it does not replenish and closes when the limit is reached.

ADVANTAGES OF

A LINE OF CREDIT

Built-in flexibility
No penalties for early repayment
Pay interest only on what you borrow, not the full limit amount.
Choose from different types of lines.

When are Lines of Credit not a good fit?

If your business is less than two years old, it may be difficult to qualify for a line of credit. In this case, let us help you explore a short-term loan or working capital loan.

How does a Line of Credit affect my business credit history?

An LOC can affect your business’s credit in the same way as other loans do. Your debt-to-income ratio, credit mix, and payment histories will all change to reflect the new loan. However, you control whether these are negative or positive effects on your credit.

What are the interest rates on a Line of Credit?

Interest rates vary by lender. Average rates are currently between 5%-20%, depending on your credit. These rates change with the market, so check with us to confirm rates on lines you’re interested in.

Which Line of Credit is right for my business?

The sheer number of financial products out there can be overwhelming. So, how do you choose which product is right for your business? We have the expertise to help narrow the playing field, based on your needs and expectations. Speak with our friendly staff today.