Operating Lines Of Credit For Local & Small Business Financing

As a locally owned and operated bank, Rivers Edge Bank provides small business financing opportunities to support other local businesses ingrained in the same communities we call home. We encourage business growth not only as your local business lender but also as your neighbors, proud to be your partner on the journey. Along with traditional business loans, we offer operating lines of credit for small businesses seeking flexible cash flow for ongoing operational expenses. A line of credit enables revolving funds at the ready for you to pay essential expenses while maintaining a working capital even in seasonal slumps. Whether you’re navigating a setback or looking toward the future, our team is here to help you benefit from a business line of credit keeping you on pace to achieve all of your business goals.

What Is An Operating Line Of Credit?

An operating line of credit is a flexible financing solution to supplement cash flow, especially during off seasons, as well as to offset unexpected expenses as they arise. Designed to operate much like a credit card, a small business line of credit makes revolving funds available up to a predetermined amount, which you can borrow against for spending capital. Interest is only owed on the amount you use, allowing for flexible repayment in line with your spending. Essentially cash flow on demand, our operating lines of credit are designed to spend as you see fit. With that in mind, there are strategic ways to get the most out of your line of credit with careful consideration of how to put the funds to use.

Common Expenses Covered By Business Operating Lines Of Credit

In our experience, revolving business lines of credit are best suited for short-term spending, and they’re especially beneficial for businesses like agriculture, construction and retail with income fluctuating based on seasonal trends. From recurring operational expenses to one-time investments in inventory or equipment, our local business lenders put the spending power in your hands. Common costs to potentially cover with a revolving business line of credit include:

Construction projects
Inventory
Trucking expenses
Maintenance
Equipment
Start-up
Payroll
Daily operations
Rent
Emergency funds

As long as you keep up with interest payments and spend within the balance allotted to you, how you apply the cash is ultimately up to you. Rivers Edge Bank's small business financing solutions set you up for success with variable rates, tailored terms and repayment schedules aligned with your needs.

business owners pointing at and looking at a laptop screen.

How A Revolving Business Line Of Credit Works

The benefit of a revolving business line of credit is that it's a gift that keeps on giving to those who manage spending and payments wisely. Our operating lines of credit can be renewed annually to account for seasonal ebbs and flows in cash flow without needing to submit a new application every year. You only pay principal and interest based on what you spend, with flexible repayment options available in line with your cash flow. Pay down the line of credit during your busy seasons to restore your full balance before slower periods set in. We give you the flexibility of reliable cash flow all year long.

If larger expenditures like equipment or machinery are required during the year, our local business lenders make it easy to refinance that amount into a traditional term loan to free up your operating line of credit as needed for routine annual expenses. We can help you determine when a line of credit or loan makes sense for your small business depending on your goals.

What Is A Business Line Of Credit Vs. A Loan?

If you're unsure which small business financing solution makes the most sense for your business, know that Rivers Edge Bank offers both business loans and operating lines of credit with terms tailored to your convenience. Both options fulfill different needs, and they can also be used in tandem to support overarching business goals. Still, to better understand how each solution benefits you, here's a quick overview of a business line of credit vs. a loan:

	Loans	Lines Of Credit
Purpose	Fulfill a specific business need like a planned expansion or facility upgrade	To be used at your discretion, typically for day-to-day operational expenses
Requirements	Usually require long-term assets for collateral and established cash flow history	More accessible for startups and small business ventures
Disbursement	Typically paid as a larger, one-time lump sum	Generally is for a smaller amount but on a revolving annual basis for repeat use
Repayment	Pre-determined, predictable installments required throughout the life of the loan	Variable payments based on what you use to pay down balances and pay off interest in line with cash flow cycles during the year
Length	Long terms ranging from 5-20 years	Renewed annually

Benefits Of Lines Of Credit For Small Businesses

If the benefits of a small business line of credit feel right for your business, we're here to help you reap the rewards of small business financing as a local business lender that always has your back. Through a revolving business line of credit, we provide quick capital for local businesses needing dependable cash flow fast, making it easier to sustain business growth even during the off season. Liquidity and flexibility, combined with the revolving credit, position business owners to make strategic purchases, respond to emergencies and facilitate long-term growth with regular cash flow and convenient repayment options.

Compared to a credit card, an operating line of credit with Rivers Edge Bank enables a relationship with our trusted and experienced lenders who can provide support and additional services as needed. Our variable interest rates offer a friendlier entry-point than most business credit cards so the money you borrow does more for you. Plus, we make small business financing and banking a breeze with our Business Banking Online solutions for payroll, bookkeeping, remote deposit, mobile account access and more. Whatever you need to succeed, it’s all here at Rivers Edge Bank!

Partner With Our Local Business Lenders For Small Business Financing Solutions

At Rivers Edge Bank, we’re proud to partner with local business owners in our communities to leverage our big-banking resources alongside our signature small-town touch. Our community-oriented local business lenders serve as close partners to the small businesses providing a strong economic foundation for our towns. Contact our team to learn more about the benefits of opening a business line of credit with your local Rivers Edge Bank.