Revolving Lines of Credit

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.

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.