Working Capital Loans and Lines of Credit
At Dieterich Bank, we understand that sometimes your business just needs a little bit of help bridging the gap between accounts payable and accounts received, or during off seasons when business might be slow. Operating expenses are a fact of owning a business, and a fluctuating working capital can make it difficult to handle regularly.
We're here to cover all your commercial lending needs, including financing options for your daily business expenses. And with a low interest rate, you'll be able to pay it back without hurting your bottom line.
Every day, we aim to be the best bank for your business loan needs. Depending on the kind of help you need, you can choose between a term loan or revolving line of credit. Learn more about each one below.
Operating Line of Credit
A line of credit, like a credit card, lets you draw on your credit line as needed and only pay interest on the funds you use. This flexibility and fast, easy access to funds make it a crucial lifeline for many small businesses when there is an urgent, short-term need for additional cash.
Many businesses experience different times of year where their cash flow is different. It’s not uncommon for business to boom around the holidays and lessen in another season, but this can make it hard to plan for the future and grow your business. This is where this business line of credit can come in.
Even if business is steady throughout the year, however, it’s a good idea to have an operating line of credit open in case of emergencies. For both the expected and unexpected expenses, it can be a quick, low-cost way to bridge the gap.
Come talk to us about getting access to an ongoing source of funds to help manage cash flow, pay bills and otherwise maintain the daily operations of your business.
Permanent Working Capital
Sometimes your business’s needs require a longer-term loan to cover more than just seasonal variances. For example, if your business has experienced growth recently, you want to replace short-term debt with something more manageable or your capital was previously funded by equity.
That’s why we also offer a permanent working capital loan. To boost your working capital while your business grows or transitions, you’ll receive a lump sum with a low rate that you can pay off once your accounts received have been collected.
When your business needs help, turn to the community bank that’s always on your side. Talk to us today about getting the commercial loan your business needs to thrive.
Business Lines of Credit Vs Loans
It can be hard to choose what kind of operating loan is best for your situation. The key difference is the loans' terms.
As mentioned above, a line of credit is a revolving credit line that allows you to draw on funds as needed, and your regular payments you make will change depending on how much you borrow. A term loan for business has a fixed term and rate, and you pay the same amount every time you make a payment until it's paid off.
If you need help determining which loan is better for you, our experienced loan officers can help.