A Business Line of Credit
Waiting from the time a product or service is sold until the day payment is received, can upset even the most resourceful companies – ultimately stunting growth and hurting productivity. A Business line of credit can be the answer to this cash flow dilemma.
Take a moment to discover the benefits by watching a short video.
By submitting copies of invoices to the bank through online software, you can receive an “advance” on the money owed from your customers (accounts receivable). Payments for these invoices are then submitted for processing and serve as repayment for the advance on the line of credit.
Bank staff are available to assist you with these transactions and provide timely communication regarding both completed and pending activity. We do not bill, nor do we collect, outstanding balances. Rather, we provide necessary information for you to conduct follow up and obtain payment for your accounts receivable.
Unlike traditional loans that charge interest, this Business Line of Credit charges a discount fee (percentage) on each invoice. This fee will vary depending on several criteria, but it is generally similar or less than the fee that would be paid for the business to accept payment by credit card.
The overall value of a Business Line of Credit and receiving an advance on expected payments can be significant, including:
- Allowing you to take advantage of supplier and other prompt payment discounts
- Increasing sales
- Utilizing predictable cash flow for improved and efficient operations
- Investing in growth opportunities
- Offering convenient terms to meet the needs of your customers