Bank Line Of Credit
A bank line of credit is most appropriate for companies seeking a long-term debt partner that is willing to grow alongside the business. Businesses that are experiencing rapid growth and need an efficient capital injection are great candidates for a bank line of credit. Lines of credit are intended to grow in tandem with a company’s sales. Pricing generally starts at Prime or SOFR. A cash-flow piece (air-ball) based on EBITDA or net income is also offered. Pricing also varies by the financial strength of a given company.
TIME TO CLOSE
4-6 weeks from a signed term sheet
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SECURITY
Senior Secured
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PG
Sometimes required, depends on the owner’s credit/facility size
CHECK SIZE
$1-$50+ Million
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RATE
Start at Prime or SOFR
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TERM
Varies, depends on the bank and structure