Operating Lines of Credit
Contact Us
Short-term loans are not too common and lenders that have them available usually open them for real estate purchases. This is why companies and individuals have problems covering other expenses, which leads them to use their own funds and savings unless they are aware of the operating lines of credit.
This option is very similar to a loan but not quite called in that way because it does not work in the same way as traditional credits. We all know that loans you request from banks, private companies, and any individual, consist of obtaining the total or partial amount of the money you need for a project and purpose, and you have to pay interest rates plus the money lent in an established period of time.
However, you have to wait for the lender you review your request, and only if you were able to meet all the requirements, and if approved, you still have to wait to access the funds. Also, these loans are usually for long-term payments which means you have from 10 to 30 years unless you are requesting a very specific one for only one or two years for repayment.
It is an exhausting process most of the time and despite private lenders being able to speed it up, you still have to consider several factors. Here is when operating lines of credit can be more suitable if you are:
- Trying to access funds in a matter of days and when needed.
- Looking for short-term periods of time for repayment (which lowers the interest rates).
- In need of using the funds for other expenses: cash flow, small acquisitions for your business, cover other expenses and payments, and more.
How do operating lines of credit work?
Essentially, they are just like credit cards. When you request the option from a company or lender, you will go for a specific amount of money which the lender can decide to totally or partially approve. If approved, you can access the money anytime. For example, you got a $500,000 line of credit and you decided to use $100,000 to pay your employees. Then, you are owning the lender $100,000 but still have $400,000 available to use anytime.
You cannot exceed the funds available and after using everything, you have to repay in order to access the same amount again. Of course, you can repay—if we follow the previous example—$100,000 and have your $500,000 complete again. At least, at Commercial Real Estate Loan Pros of Tampa, this is how we work with operating liens of credit since some private companies tend to add a few twists.
However, as we mentioned, it is just as having a credit card but with lower interest rates, more time for repayment, more money available—most of the time—, and more flexibility overall when you choose to have us as the providers for this type of credit. Just keep in mind that this option is only available for businesses and the amount that can be requested and available will depend on their annual revenue and other factors.
Our company, Commercial Real Estate Loan Pros of Tampa, is very particular about the conditions and terms established for operating lines of credit since we consider the type of company and business you own or are trying to work with. Therefore, let us know all the details in your request and we will do our best to offer the best deal if you get approved.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.