Business Line Of Credit
Business Lines of Credit have many uses in your business. See one of our Business Banking officers to see what type of line of credit may suit your needs.
Typically business lines of credit provide short term credit needs for differences of cash flow in your business cycle. Lines of credit may be set up as “Revolving” or “Draw Down”.
Revolving Lines of credit are a very common business need and are set up with a limit reflecting your needs to sustain your business cash flow until sales or inventory and product are made and the cash is collected. Once you collect the funds from the sales, the line is paid down and then is available to be used again for the next business cycle. Properly utilized, Business Revolving Lines of credit are one of the best used financial tools for a business. The lines are typically reviewed annually to insure the authorized limit is still appropriate for your business needs and to make sure the line is being utilized for the purpose intended. Many times lines do not entirely pay down during the business year because the business has continued to grow and the line is no longer meeting its needs.
Other times the lines are not paying down due to increasing inventory levels, declining sales, or adverse market conditions. Working with your Business Banking officer will determine where you and your LOC are within the business cycle and then take appropriate action.
Draw Down lines of credit are set up with a total limit to be drawn against, with the line paid off when a project is completed and the line is no longer needed.
Both “Revolving Lines of Credit” and “Draw Down” Lines of credit are priced based on the financial and credit strength of your business, if they are secured by collateral or unsecured, and if the lines are being supported by personal guaranties by the business owner. There are also several other factors including if you have a current or potential profitable relationship with the bank based on other bank products you may already have.
At Anchor Bank, we strive to deliver ‘Banking beyond the ordinary’ every day.
For more information call or visit any Anchor Bank location or call us at 360-532-6222 or toll-free at 800-562-9744 for a quote and application package.
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