BankNewport can support your working capital needs with a Line of Credit.
We provide both revolving and non-restoring lines of credit that can either be used to meet your company’s daily cash flow needs or be there “just in case” of the unexpected emergencies and opportunities. Lines of credit enable a company the flexibility of borrowing when the need arises and the practicality of paying interest only on the funds borrowed. Lines of credit can be secured or unsecured and have a variety of repayment options at a variable interest rate.
The way that a Revolving Line of Credit works is that you can borrow whenever the need arises, up to your pre-approved credit limit. With your request, the money is deposited directly into your business checking account. As your business receives cash in its normal cycle, you can pay down the revolving line of credit, again, directly from your BankNewport business checking account. The advantage of a revolving line of credit is that as you borrow funds and as you repay them, your pre-approved credit limit is restored, giving you the ability to re-borrow the funds as the needs arise. You can repay and re-borrow the money as often as you like and your costs are minimized because you pay interest only on the outstanding borrowed balance.
Another advantage of BankNewport’s revolving line of credit is that by utilizing our online banking feature, your lines of credit can be accessed 24 hours a day/7 days a week!
A second line of credit offered by BankNewport is called a Non-Restoring Line of Credit. This type of line is generally used for a short-term, single purpose event (i.e. acquiring inventory in an auction setting), in which the exact amount of usage is not immediately known. With a non-restoring line of credit, you only pay interest on the outstanding borrowed balance. Because of the specialized nature of the loan, as you repay the principal balance of the loan, the availability of credit does not restore as it does with a revolving line of credit (see above).
Lines of Credit up to $75,000 are also supported within BankNewport’s Small Business Lending Program category.
For more details and information, contact Our Commercial Lending Team or call 845-2265 or 877-709-2265.