A Commercial Equity Line of Credit allows the mortgager to borrow money on a regular basis to finance transactions and for business purposes. The amount borrowed depends on the company’s collateral and cash flow needs. In this method of borrowing, the borrower mortgages company assets, rather than personal assets, as collateral. Even though it is harder to obtain, it provides greater borrowing power.
With the help of a Commercial Equity Line of Credit, the borrower can regulate cash flow by borrowing only what is needed. It reduces interest expenses often incurred by over borrowing. The interest rate equals or exceeds the prime rate.
A Commercial Equity Line of Credit provides almost all the benefits that are available with a Home Equity Line of Credit. The line of credit can be used to improve cash flow or expanding business. Also, it is used for other expenses such as purchasing equipment and increasing inventory. A major advantage of CELOC is that the borrower has to pay the interest only on the amount accessed.
Also known as Operating loans, a Commercial Equity Line of Credit plays a vital role in the business field. By providing quick access to cash with the option to pay overtime, CELOC ensures flexibility to the borrower.
Equity Line Of Credit provides detailed information on Equity Line Of Credit, Home Equity Line Of Credit, Commercial Equity Line Of Credit, Best Home Equity Line Of Credit and more. Equity Line Of Credit is affliated with Financial Freedom Resources.