Business Line of Credit
Secured Business Line of Credit
Need help managing working capital, operating expenses, cash flow or payroll? Our secured Business Line of Credit could be an ideal solution.Footnote 1 A business line of credit gives you more flexibility than a term loan—you only use what you need instead of taking a large lump sum. That’s a big advantage, because you only pay interest on the credit you’ve used.
Highlights:
- Revolving business line of credit for operational purposes
- Business line amounts starting at $10,000
- Variable rate tied to PrimeFootnote 1
- Must be securedFootnote 2
- Fees applyFootnote 3
Best For:
- Established businesses
- Bridging cash flow gaps
- Business growth
- Unexpected expenses
- Other operational purposesFootnote 4
- Businesses with annual sales of at least $100,000+
What You'll Need to Apply
Business Line of Credit requests must be discussed with a lending representative before applying.
- Completed and signed business loan application
- Business tax returns under existing ownership (most recent 2 years)
- Business plan may be required
- Personal tax returns for all owners/guarantors (most recent 2 years)
- Financial Statements (Balance Sheet, Profit and Loss, A/R A/P Aging Report, Debt Schedule)
- Personal Financial Statement for all owners/guarantors pdf
- Proof of collateral
- Additional documentation may be required
- Personal guarantee
- Personal credit check
Checking Line of Credit
Get peace of mind with a Checking Line of Credit,Footnote 1 which protects your checking account from overdrafts and per-item overdraft fees.
Best For:
- Overdraft protection of business checking account
- Offsetting short-term cash needs
What You'll Need to Apply:
- Completed and signed business loan application
- Personal guarantee
- Personal credit check
PDF
How a Line of Credit Can Help Your Business
A line of credit allows you to draw money quickly, without having to reapply each time you need it. If you’re approved for a line of credit, you’ll be given a maximum amount you can borrow. You can use up to that amount over time, as you need it. And, you’ll only pay interest on the amount you’ve used, not on your maximum limit. Here are some other key benefits:
Cash Flow Support
Have a temporary gap between revenue and expenditures or get hit with an unexpected expense? Maybe you have a seasonal business and need some help to tide you over in the off season. Just draw from your line of credit to cover what you need.
Growth and Other Opportunities
Imagine your business suddenly takes off. If you need to increase inventory quickly, need more space or can get lower prices if you buy larger amounts, a line of credit can help you seize the day!
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Ready to Apply?
To be eligible for Business Solutions offerings, business owners must first be members of Navy Federal Credit Union. Already a Navy Federal member, but not yet a business member?
Already a business member and ready to apply for a line of credit?
Secured Business Line of Credit
- Call 1-877-418-1462, 9 am to 5 pm, Mon.-Fri., ET and request to be connected with a business lending representative.
Checking Line of Credit
- For Single-Owner Businesses: Begin the application process by signing in to our secure portal using your Navy Federal personal credentials.
- For Multi-Owner Businesses: Complete the application form and beneficial owner form (if required). Print them out and sign with a pen (digital signatures aren’t accepted). Then scan the signed document(s) and submit online.
You'll receive an update approximately 7-10 business days after you've submitted your request.
Note: If you’re a Navy Federal employee applying for business credit, you must contact Business Solutions by calling 1-877-418-1462 to apply.
Disclosures
A business line of credit (BLOC) is a credit product, and rates are based on creditworthiness and will vary with the market based on The Wall Street Journal Prime Rate. A business checking line of credit (CLOC) is a credit product with a fixed rate of 17.9% APR. CLOC repayment terms are 2% of the outstanding balance or $20, whichever is greater, and the total outstanding balance will be due when it is less than $20.
↵Eligible collateral may include: accounts receivable (up to 80% of qualified receivables and requires an all business assets lien); inventory (with advance rates determined by underwriting); and qualified real estate (with Navy Federal in first lien position).
↵Contact your business loan officer for more information.
↵Not to be used for real estate ventures.
↵The initial $50 annual fee is assessed with the first statement.
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