Line of Credit
Establish a maximum loan balance and draw down on the line of credit at any time, as long as you do not exceed the maximum amount set in the loan agreement.
The advantage of establishing a line of credit is that interest is not usually charged on the part that is unused, and the borrower can draw on the line of credit at any time. Depending on your agreement, the line of credit may be classified as a demand loan, which means that any outstanding balance will have to be paid immediately at the bank’s request.
Revolving Lines of Credit
Are your cash flow needs being met? If not, you can establish a revolving line of credit to help with fluctuating operating expenses. A line of credit is there when you need it and a commitment fee is paid up front. Along with the commitment fee, there are also interest expenses for corporate borrowers.
Certificate of Deposit Loan
TexStar Certificate of Deposit Loans offer:
- Interest rates slightly above the current interest rate of a TexStar Certificate of Deposit.
- Monthly amortizing, monthly interest-only or quarterly interest-only payments available.
- Loan amounts up to 90% of the Certificate of Deposit balance.
- Savings of an additional .25% on amortizing payment loans with automatic payment from a TexStar National Bank checking or savings account.