by Emilie Moody
The first determinant in deciding which type of credit is best for you is to define the purpose for the loan proceeds and the type of assets that will be securing that loan. Business loans are intended for long-term financing, typically best for purchases of property such as real estate or equipment. These loans are structured with a fixed interest rate and set monthly payments calculated over the life of that underlying asset. A line of credit, on the other hand, is intended to provide working capital to shore up the business’ cash flow on a short-term basis. Common uses for lines of credit are financing of receivables or inventory. There are variable rate loans which only require interest payments monthly on the balance outstanding. Lines of credit are ideal for providing the cash flow your business needs while waiting for those short-term assets to convert to cash.
Is Remote Deposit Or Treasury Management Mobile Banking Right For My Business?
Most businesses can benefit from the convenience of digital solutions and the recent pandemic has made accessibility even more of a priority for business owners. Remote deposit is a key for any business that receives a large number of checks and allows you to deposit those checks from your desk, making the task of handling your banking more convenient and efficient and improves cash flow through faster funds availability and check clearing. All you need is a computer, an internet connection and a check scanner provided by your bank. For those businesses that do not process many checks, mobile banking is another great digital solution that allows for monitoring of business account and loan balances, ACH Origination, Domestic & International Wires with the benefit of Fraud Protection, all from a user-friendly mobile app. The app allows for 24-hour account access and more information can be found at http://www.simmonsbank.com/downloadapp. Third party fees may apply. All accounts subject to approval.
Answers provided by Emilie Moody, Commercial Lending at Simmons Bank. She can be reached at 314.569.7201 or emilie.moody@simmonsbank.com.
Submitted 2 years 335 days ago