A business line-of-credit is commercial financing that is used for intermediate business financing needs, typically less than 1 year. The maximum loan balance is set by a bank or lender and the business can draw down on the fund as it is needed. Lines-of-credit that RPC can assist in arranging are from $250,000 for small businesses, to well over $250,000,000 for mid to large size companies.
Repayments for lines of credit are typically interest only and due monthly.
While each lender has their own criteria for their lines of credit, a typically lender will secure their lines of credit with assets such as accounts receivable or the equity in their hard assets.
A lender will extend a line-of-credit to a business based of a percentage of the A/R or net value of the hard asset.
Some banks and alternative commercial lenders will provide lines-of-credit on an unsecured basis provided the company is creditworthy, and the financials support the facility.