Revolving Lines of Credit for Business - Sunwest Bank
Important Articles

Revolving Lines of Credit

Flexible Financing for Your Business

As a small business owner, you need access to financing that can adapt as quickly as your business does. A revolving line of credit from Sunwest Bank provides the flexible financing your company needs to cover unexpected expenses, bridge cash flow gaps, and seize growth opportunities when they arise.

Unlike a traditional small business loan, our revolving lines of credit work like a business credit card, allowing you to access funds up to a set credit limit as needed. As you repay the outstanding balance, those same funds become available to borrow again, creating an ongoing cycle of business credit you can turn to whenever an urgent need arises.

Get Started Today!

With a revolving business line of credit from Sunwest Bank, you only pay interest on the funds you use, not the total amount of your credit limit. This can save you substantial money compared to other financing options. With a competitive variable interest rate, our revolving lines provide an affordable way to ensure your business always has access to capital when opportunities and obligations demand it.

Revolving Credit Provides Maximum Flexibility

The flexibility of a revolving line of credit makes it an essential tool for managing a small business’s variable cash flow needs. Here are some of the key benefits our revolving credit products offer:

  • Borrow only what you need when you need it. You decide when to access your line of credit and how much to withdraw, borrowing incrementally instead of taking a large lump sum. This minimizes your interest costs.
  • Reuse funds as you repay. Every time you pay down your balance, that credit becomes available again to cover your next financial need. This cycle continues through the entire term of your business line.
  • Cover unpredictable expenses. Emergency repairs, seasonable business fluctuations, and unplanned costs can be covered through your available credit; no new loan application is required.
  • Access working capital quickly. Compared to other financing options, our streamlined application and funding process gives you fast capital access within your approved borrowing limit.
  • Consolidate higher-cost debt. A revolving line’s lower rate can reduce monthly payments if you have outstanding credit card balances or other high-interest debt.
  • Smooth out cash flow gaps. Dips in monthly revenue can be offset temporarily through your available business line of credit until the business picks back up.

Because the flexibility of revolving lines of credit aligns so well with small businesses’ frequent peaks and valleys, it has become a must-have source of financing. Our revolving business lines provide optimized access to capital so you can respond rapidly to whatever situations your business encounters.

Who Qualifies for a Business Line of Credit?

Many small businesses can benefit from the flexible access to funding offered by a revolving line of credit. Here are some of the eligibility factors we consider:

  • Time in business. We can consider companies operating for as little as six months. Both startups and established businesses can qualify.
  • Credit history. Your personal and business credit scores are essential in determining your credit limit and terms. Minimum scores vary by product.
  • Revenue and cash flow. We’ll review your financial documentation to confirm your business generates adequate annual gross revenue and cash flow to support the line.
  • Collateral. Your business or owners’ assets secure some of our revolving line products. Others are unsecured.
  • Industry experience. Your management team’s background in the industry also factors into credit decisions.

Even new businesses and those with limited operating history may qualify for one of our revolving credit products.

While eligibility varies between our credit products, the common thread is that we make lending decisions based on the total picture of your company and ownership – not just a formula. Our experienced business bankers take the time to understand your unique circumstances, operating expenses, and cash flow patterns when considering your application.

Compare Our Revolving Line Options

Sunwest Bank offers a two options of revolving secured lines of credit solutions designed to meet different business financing needs:

Secured Lines

Our secured revolving lines leverage your business or home assets as collateral for access to a higher credit limit and potentially lower, more competitive rates. Two options are available:

  • Secured Business Line of Credit: Borrow against eligible business assets like accounts receivable, inventory, and equipment—limits based on collateral value
  • Home Equity Line of Credit: Secure the equity through your primary residence

Lower interest rates may apply to secured business lines due to the reduced risk from the pledged collateral. But the trade-off is those assets can be claimed in a worst-case default scenario. Our bankers can go over the pros and cons with you.

In addition to revolving credit lines, Sunwest Bank offers installment loans and SBA loans to match your specific borrowing needs. Your relationship manager can explain all your options to choose the optimal debt product and structure for your business.

Streamlined Application and Funding Process

Applying for a revolving credit line from Sunwest Bank is simple and efficient:

  • Quick application. Our online application takes just minutes to complete with details about your business. Apply anytime.
  • Fast decision. We strive to evaluate applications and communicate a decision quickly. The key is having your financial information ready.
  • Minimal documentation. Most materials we need to review are available through online banking and accounting systems. We’ll discuss specifics upfront.
  • Efficient funding. Once approved, your funds will be available and transferred conveniently into your Sunwest Bank checking account.

We know you don’t have time for a lengthy, complicated loan process when you need access to financing. Our streamlined credit line process minimizes headaches, so you can quickly get a flexible funding solution.

Put Your Line of Credit to Work

A revolving line of credit provides the ready reserve of working capital every business owner needs. Here are some of the most common uses our clients make of their available credit limits:

  • Cover an unexpected equipment repair or facility maintenance issue
  • Bridge a temporary gap in cash flow due to a monthly fluctuation
  • Take advantage of vendor discounts for accelerated invoice payments
  • Expand inventory to accommodate rising customer demand
  • Smooth out seasonal dips in revenue for industries like retail and construction
  • Support a new marketing campaign or product launch requiring upfront investment
  • Handle a significant one-time expense for upgrades for business expenses like new software or vehicles
  • Consolidate high-interest credit card balances under a lower rate

The most effective uses revolve around flexible access to funds for pressing needs before cash comes in through future sales and collections. A credit line lets you take immediate action while managing the impact on monthly cash flow.

Responsible Revolving Credit Management

While having a ready reserve of funds available through your credit line can be invaluable, responsible use is essential. Here are a few best practices to keep in mind:

  • Treat your credit line as a source for temporary borrowing needs rather than long-term debt.
  • Make payments as soon as possible to restore your available balance for the next need.
  • Watch that you don’t overextend through withdrawals exceeding your incoming revenue.
  • Have a plan to pay down more significant balances over a reasonable period.
  • Use your credit line strategically to support growth rather than frivolous expenses.
  • Track the impact on your monthly cash flow and ability to make required payments.

As your trusted banking advisor, Sunwest Bank will help you strike the right balance so your line of credit provides flexibility without threatening your financial stability.

Our open communication and transparency simplify proactive management.

Count on an Exceptional Banking Experience

Sunwest Bank is dedicated to building lasting relationships that help your business grow and succeed. Our revolving credit lines deliver more than just flexible financing:

  • Local experts. Our team knows the communities in which we operate. We make personalized decisions based on an up-close understanding of clients’ needs.
  • Customized options. We offer tailored solutions, not a one-size-fits-all approach. Credit limits, interest rates, and structures are designed for your unique situation.
  • Responsive service. Experience the difference of a bank where you’re still in a giant bureaucracy. Your Sunwest banker is always available to answer questions and address needs.
  • Seamless online banking. Our digital tools make it easy to apply, draw funds, monitor bank account balances, make payments, and manage your line 24/7.
  • Competitive value. From interest rates to fees, you’ll enjoy the advantages of a leading bank without hefty bank fees and impersonal treatment.

We invite you to discover the Sunwest Bank difference for yourself. Our experienced bankers are ready to explore how a revolving business line of credit can provide the right financing mix for your company.

Frequently Asked Questions

Many small business owners have questions when considering a revolving credit line. Here are answers to some of the key questions we hear:

Can a business have multiple lines of credit?

Yes, having more than one revolving credit line is possible if approved by the issuing banks. This allows access to more significant total credit limits.

Can a startup business get a line of credit?

Startups under two years old often have difficulty qualifying for unsecured credit but may be approved for a secured line leveraging collateral or personal guarantees.

Can small business loans be revolving credit?

Term loans provide one-time lump sums, while revolving lines allow repeated borrowing up to a limit. However, some term loans feature future “re-advance” options.

Can you get a business line of credit with no income?

Many lenders require two years of operating history with revenue and income documentation to approve credit. But startup-secured lines are possible.

Can you withdraw money from a business line of credit?

Yes, the flexibility of revolving lines is you can access approved funds as needed through withdrawals—minimal restrictions.