Business Line of Credit

A business line of credit can support the financing of accounts receivable, taking advantage of trade discounts, making opportunistic inventory purchases and generally supporting the short term working capital needs of your business.

As a type of revolving credit, a business line of credit is a flexible method of borrowing money for your company. Instead of borrowing a fixed amount of money at one time as with business term loans, revolving credit allows your business to borrow working capital in increments that you need, up to a pre-approved limit. You make interest-only payments on a monthly basis and repay principal as the business’ cash flow allows.

  • finance accounts receivable
  • interest only
  • seasonal purchases
  • unexpected expenditures
  • manage daily cash flow
  • access to funds as needed
  • opportunistic purchases
  • use only what you need
  • loan decisions made locally in Michigan

Advantages of a Business Line of Credit

When weighing the decision of which type of financing is best for your business, a Clarkston State Bank loan officer will work with you one-on-one to assess your current financial needs and help you determine if a business line of credit is right for you.

The primary advantage of a CSB business line of credit over our business term loans is that the interest you pay is only based on the outstanding balance from the line of credit. You can use the credit line at your discretion and you can make multiple draws over time as you need. You do not have to borrow the entire amount that you are approved for, but it is available to you if needed. Your business uses what it needs from the line of credit and then pays back on what portion of the line is borrowed. You can repeat this process as many times as you need to cover the capital requirements of your business over the duration of the loan.

A business line of credit is intended for short-term cash flow management, where financial flexibility is important and availability of additional funds grants your business greater confidence to operate and grow.



For more information, please contact our loan department at (248) 922-2700