Term Loans and Revolving Lines of Credit
Term loans finance one-time capital needs — acquiring a business, buying out a partner, refinancing real estate, or funding equipment-heavy capex projects. Tenor runs three to seven years for working capital and acquisition financing, extending to ten years for owner-occupied commercial real estate and fifteen years for SBA 504 CRE. Rates reference SOFR or Prime with spreads driven by borrower credit profile, collateral coverage, and industry. Monthly amortization with principal and interest is standard; covenants commonly include fixed charge coverage, debt service coverage, leverage, and minimum liquidity tests.
Revolving lines of credit cover recurring working capital needs — seasonal inventory builds, receivable growth, bridge financing between capital raises. Facilities run 12 to 36 months with annual renewal. Borrowing-base formulas typically advance 80 to 85 percent of eligible accounts receivable and 50 to 60 percent of eligible inventory. The cash management loan-sweep configuration can direct excess operating cash toward revolver pay-down automatically, reducing interest expense while preserving draw availability.
Lines of Credit


