Typical terms of lines of credit?
I know an owner that has quality (blue chip) customers but working capital is problematic.
What are the typical terms for a line of credit? Origination cost? Personal guarantee? Fee on unpulled line? etc.
Post a question, deal, job, etc...
Make a post...
by a searcher
from Princeton University
in New York, NY, USA
in New York, NY, USA
5yrs ago
Share
0 Likes
189 Views
Loading...
reply
by a searcher
5yrs ago
from University of California, Berkeley in San Francisco, CA, USA
from University of California, Berkeley in San Francisco, CA, USA
~80% advance on eligible AR. <1% Origination, Likely PG. Unused fee typical. If true ABL, will need to consider upfront audit fee and ongoing maintenance.
reply
by a searcher
5yrs ago
from IE Business School in Seattle, WA, USA
from IE Business School in Seattle, WA, USA
If you don't need more than $350k I'd suggest looking at an SBA 7(a) express LOC. You'll probably have to PG but it's a simple revolver with no fee on the undrawn amount, low origination/packaging fee ($1k), & many banks will offer an "unmonitored" line which allows you to draw up to the full amount for any short term reason you need even without the A/R to back it up.
More on Searchfunder
Loading...