Business Line of Credit
A revolving business line of credit for working capital, seasonal inventory, and the gap between invoicing and getting paid. Apply with MHV.
Add some flexibility to your business.
Borrow what you need, when you need it, up to your limit. Pay interest only on what you use. Repay, and the room is there again.
How a line of credit works
You finished the job in March and the check comes in May. The fall inventory order is due before the fall customers are. Payroll doesn't wait for receivables. A line of credit is how a healthy business stops financing its own timing problems out of pocket.
Lines are available based on your project
As you need funds, you will draw against your line of credit.
Your line of credit may be secured or unsecured depending on the line size and the strength of the business.
Interest accrues only on the outstanding balance, not the full limit.
The rate is variable and tied to [FPO: index, e.g., Prime]. [FPO-VERIFY: variable vs. fixed; index and how it's disclosed]
Repay on your schedule, with a minimum monthly payment
As you pay it down, that room becomes available again. Link the line to your MHV business checking, and it covers a payment that would otherwise overdraw the account. You pay interest only on what's advanced.
Need even more flexibility?
Talk to your lender about a Flex Business Line of Credit. This product provides automatic term loans from a larger Flex line of credit that can be used to purchase equipment for a business.
Built for needs that come and go.
For a single large purchase you'll pay off over years, a Business Term Loan is the cleaner structure. Your lender will tell you which one fits.
Bridging receivables
Cover payroll and materials while you wait on a customer or a municipality to pay
Seasonal inventory
Stock up before your busy months and pay it down as you sell through
Short-notice opportunities
a bulk discount from a supplier, a piece of used equipment that won't be there tomorrow
Smoothing uneven months
Smoothing uneven months so you're not choosing between a vendor and a paycheck
A safety net you don't have to use
So a surprise repair doesn't become a crisis.
Stop floating your own business.
Apply for a line now, before you need it. The best time to set one up is when things are steady.
Your business lending experts
Frequently Asked Questions:
No. You pay interest only on what you've drawn. An unused line costs you nothing.
They do different jobs. A Business Visa Platinum is convenient for everyday purchases and employee spending, with a grace period if you pay in full. A line of credit typically offers a higher limit and a lower rate for carrying a balance across weeks or months, and you can move funds directly to your checking account for payroll or vendor payments. Many businesses use both.
Once a year, we review your line to keep it aligned with your business. You'll be asked for current business income statements and, typically, a recent balance sheet and business tax return. We look at how the business is performing, not just how you've used the line. If your revenue has grown, you can increase your limit at the annual review. Your lender will tell you what's needed and when.
Yes. You can link your business line of credit to your MHV business checking account. If a payment would overdraw the account, funds automatically transfer from your line of credit to cover it, so a payroll run or vendor check doesn't bounce due to a timing gap. You pay interest only on the amount advanced.
All loans subject to credit approval and membership eligibility. Rates, terms, and conditions subject to change without notice. Variable rate may increase after account opening. Personal guarantee and collateral may be required. Lines of credit are subject to periodic review.