How Would My Business Benefit From a Line of Credit?
Lines of credit are revolving credit used to fund short-term or seasonal needs, payment of current liabilities, such as payroll or accounts payables, seasonal inventory, etc. Simply put, lines of credit have flexibility that a regular business loan just doesn't have. By allowing you to draw and repay funds as you wish, your business is better equipped to manage cash flow and handle unexpected expenses, among other things.
Which Lines of Credit Does FirstBank Offer?
We offer three different options for your line of credit.
Working Capital Line of Credit - We understand the need to take advantage of trade discounts, facilitate payroll and other expenses while you collect payment for work completed, or to expedite inventory shipments. FirstBank's Working Capital Line of Credit can help your business appropriately manage cash flow by linking the amount available to draw to your accounts receivable and/or inventory. The monthly payment for this account is typically limited to the accrued interest giving you the flexibility to pay down the principal as you collect your accounts receivable and/or sell your inventory.
Commercial Cash Reserve - Any business type, small or large, can benefit from a Commercial Cash Reserve. Collateral type can vary from real estate, general business assets, or the line of credit may be unsecured.
Our Commercial Cash Reserve is attached directly to an account, allowing for quick access to finds as needed. The cash reserve can be advanced for specific purchases, or may simply serve as an overdraft protection line of credit to help bridge gaps in your cash flow cycle. If there is a balance owing on the reserve at the time your monthly statement cycles, an automatic payment will be deducted from your checking account.
Commercial FirstLine of Credit - Our FirstLine of Credit is similar to the Commercial Cash Reserve with the exception of the line of credit not being linked to your checking account. This solution is a standalone line of credit which you can transfer funds as needed. The monthly payment is typically limited to the accrued interest allowing your business to pay down the principal balance as cash flow allows. As with our Commercial Cash Reserve, collateral type can vary.
I Still Have Questions.
Great! That's what we're here for - to help your business grow and become even more successful. We're happy to discuss the details of lines of credit or anything else that may be on your mind. Contact a loan officer today at
or complete a quick form and we'll contact you when it's convenient.