Business Line of Credit with First Castle Federal Credit Union
First Castle FCU offers a line of credit that was designed with small businesses in mind. This LOC can be used as line of credit attached to your checking account or available funds to cover everyday business needs.
Whether it is to meet unusual demands, improving your office space, or take care of any other short-term financial need, a line of credit is a good way to have extra funds available to your business when you need them. Just like a credit card, you only pay interest on the money you use.
Lines of credit vary in how they are set up. For example, business lines of credit are typically asset-based, meaning hard assets are used as collateral. Such credit lines can also be based on receivables and in some cases inventory (although this is less common because the value of inventory can decline very quickly and is therefore seen as a greater risk to the lender). The interest rate can also differ because commercial rates may be equal to or exceed the prime lending rate (also based on the level of risk as perceived by the lender).