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City Bank and Trust Company Business Lines of Credit

My Bank Products

City Bank and Trust Company Business Lines of Credit

Most businesses in their growth phase experience capital shortfalls due to unforeseen operating expenses, uneven cash flow cycles, inventory shortfalls or after unexpectancies. In most of these cases, the need for an infusion of capital is only temporary, so it may not make sense to seek long term financing with a loan. Instead, the business may be best served with a business line of credit.

What exactly is a City Bank and Trust Company Business Line of Credit?

With characteristics similar to credit cards and a home equity line of credit, a business line of credit (LOC) provides the ultimate in flexibility and control for business owners who are able to effectively manage their cash flow. Like a home LOC, it establishes an amount of credit from which a business can borrow any amount for any reason, at any time. Like a credit card, it is unsecured in that there is no need for collateral as there is with a home LOC. Most City Bank and Trust Company Business Lines of Credit require interest only minimum payments that are based on variable interest rates. Interest charges only apply to amounts borrowed, so, as the principal is paid down, interest expenses decline.

The amount of credit that is made available is based on a number of criteria related to the revenue history and current financial condition of the business. Financial stability, strong cash flow, and a profitable outlook are key factors used in determining how much credit is issued.

Why a City Bank and Trust Company Business Line of Credit may be Your Best Option:

  • It can provide unfettered access to capital when it is needed the most
  • Interest expenses can be controlled
  • It doesn’t require collateral of any kind
  • It can be an effective cash management tool
  • It can be accessed for any purpose – no explanation or repayment projections are needed
  • It provides flexible repayment terms
  • It can be renewed automatically subject to maintaining good credit standing

Different City Bank and Trust Company Business Lines of Credit:

  • Single Purpose Line of Credit - Advances are to support a borrower’s special one-time need.
  • Seasonal Line of Credit - Generally used to finance inventory and accounts receivable build up associated with seasonal business activity.
  • Revolving Line of Credit - Used to finance receivable, inventory or current operating expenses. The specific terms and structure can be tailored to the borrower’s unique financial needs.
  • Business Reserve Lines of Credit - This line is tied to the borrower’s checking account and is activated by writing a check on the account. Interest is charged daily on the outstanding balance. As deposits come in, they are automatically applied to an outstanding business reserve balance, keeping the balance on the loan and your interest charges as low as possible.

With interest rates near their all-time low, there has never been a better opportunity to open a City Bank and Trust Company Business Line of Credit. Our business lending specialists can help you assess your financing needs to help you determine if a business line of credit is the best option for your business. Call 660.263.1234 or visit your nearest City Bank and Trust Company branch.


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