Lines of Credit

Lines of credit can be an excellent tool to help business owners through periods of growth. With significantly lower interest rates than credit cards offer, a line of credit can save your business substantial money in fees, as well as helping you through occasional cashflow crunches. Business Bank of Texas offers the following types of lines of credit: 

Inventory Lines of Credit

Businesses that rely on carrying inventory often experience a dilemma: they need to have inventory on hand to sell, but they need money on hand to purchase the inventory, in addition to the cost of paying employees and other bills. If this sounds familiar to you, your business may be an excellent candidate for an inventory line of credit. Reach out to one of our loan officers to learn more. 

Guidance Lines of Credit

A guidance line of credit serves as perpetual approval for a predetermined period of time, which is usually a year or less. It’s a commitment from the bank to finance assets such as real estate, equipment and other fixed assets. If your business is expanding in the next year, and you know you'll need to purchase fixed assets, getting approved for a guidance line of credit can provide you with the peace of mind of knowing that the funds will be there when you find the right equipment or property.

Accounts Receivable Line of Credit

Accounts Receivable lines of credit are especially useful for businesses with a seasonal sales cycle, such as retailers with a holiday season boom, or professional services providers like CPAs, who experience a rush of business during tax season. For these businesses, the lag between the additional cost of payroll or inventory and the time accounts receivable has been collected can be an uncomfortable time of cash crunch. An accounts receivable line of credit can bridge that gap and allow business owners to pay their bills and employees while awaiting payment from clients or customers. 

From the Business Resource Center:

• How to grow your business with a line of credit
• Cost vs. Convenience: Should you use a credit card or a line of credit to grow your business?
• Keep your business line of credit humming
• Save money while enhancing supplier relationships with line of credit sweeps
• Managing your traditional working line of credit
• Gain security and support with a guidance line of credit

How to apply:

To apply for a line of credit, complete the loan application and return it to Business Bank of Texas. You should also be prepared to provide the following: 

• financial statements for your business for the most recent two or three full years 
• the current and previous year’s tax returns for the business owners
• accounts receivable and accounts payable aging for your business
• a personal financial statement