Understanding Business Lines of Credit

What are Business Lines of Credit?

A Business Line of Credit is for business clients who need to speed up cash flow and support short-term financing for operational expenses like supplies, payroll or increasing inventory.

Business equity line of creditA Business Line of Credit from Plumas Bank is similar to a credit card in that you can borrow up to a certain limit and pay interest only on the portion of money that you borrow. You can then draw and repay funds as you wish, as long as you don't exceed your credit limit.

A Plumas Bank Business Line of Credit provides you with greater control of your capital because it allows you to reinvest in your business. You can tap into funds when you need it most - this can be crucial for meeting goals, and ultimately growing your company. A Business Line of Credit also allows for more flexible repayment options, making it simpler to navigate the expected ups and downs of business cycles. You can pay off a higher percentage of the balance when profits are up, and you can pay off the minimum required when revenue is down. And, a Business Line of Credit can help you establish a good credit score –by making payments on time and keeping a low balance you will develop a positive credit history.

Let one of our experienced loan officers develop a custom-tailored loan solution designed to help you succeed! 

You may wonder what the difference is between a business line of credit and a small business loan. While a business line of credit gives you an ongoing pool of money to access, a small business loan presents you with a one-time lump sum. You only pay interest on the money you use with a business line of credit while you will owe interest on the full amount of money from a business loan. If you meet a certain level of annual sales and have equity in your business property, a business equity line of credit is another good option. You leverage the amount of equity you have in a piece of property you own to act as security for a small business loan. Because of this security, you can generally expect lower interest rates and better terms, especially if the property has a good deal of equity. Additionally, you have the flexibility to use the funds for a variety of business purposes such as cash flow, supplies, payroll and increased inventory.

 

Who Benefits from Using Business Lines of Credit? 

Make managing and expanding your business easier with a Business Line of Credit from Plumas Bank. There are many benefits to a Plumas Bank Business Line of Credit:Banks that offer business lines of credit

  • A Plumas Bank Business Line of Credit provides you with greater control of your capital because it allows you to reinvest in your business. You can tap into funds when you need it most - this can be crucial to meeting goals, and ultimately growing your company. 
  • A Plumas Bank Business Line of Credit allows for more flexible repayment options, making it simpler to navigate the expected ups and downs of business cycles. You can pay off a higher percentage of the balance when profits are up, and you can pay off the minimum required when revenue is down. 
  • A Plumas Bank Business Line of Credit can help you establish a good credit score –by making payments on time and keeping a low balance you will develop a positive credit history. Let one of our experienced loan officers develop a custom-tailored loan solution designed to help you succeed! They can help you obtain cash flow quickly with an easy to understand application process. 

Business Lines of Credit Offered at Plumas Bank 

There are secured and unsecured business lines of credit available at Plumas Bank. A  Business Line of Credit can be secured or unsecured based on how much credit is requested, and interest rates may vary. Plumas Bank considers your company's market value and profitability versus risk.  

You may wonder what the difference is between a business line of credit and a business term loan. While a business line of credit gives you an ongoing pool of money to access, a small business term loan presents you with a one-time lump sum. You only pay interest on the money you use with a business line of credit while you will owe interest on the full amount of money from a business loan. 

If you meet a certain level of annual sales and have equity in your business property, a business equity line of credit is another good option. You leverage the amount of equity you have in a piece of property you own to act as security for a small business loan. Because of this security, you can generally expect lower interest rates and better terms, especially if the property has a good deal of equity. Similarly, you have the flexibility to use the funds for a variety of business purposes such as cash flow, supplies, payroll, equipment, and increased inventory.
 

Business Lines of Credit Requirements 

A Plumas Bank Business Line of Credit is flexible and can provide your business with working capital when needed. It’s especially useful for seasonal companies or if your business is growing quickly and you need money to pay for the expenses. 

To qualify for a Business Line of Credit Plumas Bank will look at the following: Your business assets or collateral, your cash flow or past and current revenue, your time in business, and your personal credit score, assets and professional time in business, in addition to other factors.

Plumas Bank believes the loan process can be made easier and more personal by contacting one of our expert business lenders directly so you can ask questions and they can help you through the entire application process. Let our expert lenders be your financial business partner; they can custom tailor a business line of credit that will help your business grow and succeed. 
 

Qualify for A Business Line of Credit with Plumas Bank

Make managing and expanding your business fast and easy by applying for a Business Line of Credit from Plumas Bank. A Business line of credit is for business clients who need to speed up cash flow and support short-term financing for operational expenses like supplies, payroll or increasing inventory.

A Plumas Bank Business Line of Credit is flexible and can provide your business with working capital when needed. It’s especially useful for seasonal companies or if your business is growing quickly and you need money to pay for the expenses. 

Let our expert lenders be your financial business partner. Our professional lenders can quickly custom tailor a business line of credit that you are comfortable with and help you through the application process so you can focus on the important things like building and growing a successful business!