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| A small business line of credit is most often used for short-term working capital or to finance accounts receivable and inventory |
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Key factors you should consider in determining if a business credit line is an appropriate product for your business needs:
- Business’ short-term working capital needs can be handled annually with a line of $34,999 or less.
- Business operating line is less than $250,000.
- Business frequently borrows small amounts of money and has a good repayment record on short-term loans.
- Business does not have a record of excessive overdrafts caused by a permanent working capital deficiency.
- Business’ overall borrowing and financial history indicates a solid and responsible management of credit and finances.
- Business’ need for financing does not require a discussion with, and analysis by, a loan officer with each draw.
- Business’ debt average is equal to or greater than 1.25:1.
Repayment Options
3% of outstanding balance monthly
5% of outstanding balance monthly
9% of outstanding balance quarterly
At maturity (usually 12 months)
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business checking
commercial lending