Modern
Solutions
A Revolving Credit line is similar to Pre-approved credit lines but with
more flexibility and features. They are useful if you are a business that
regularly purchases items of plant and equipment or motor vehicles.
They take away the need for a credit application each time you buy something.
One limit is approved which covers your estimated needs for the next year,
and this is renewed each year and increased as the business grows.
The difference with this type of facility is that it generally operates under
a master security agreement and as one revolving loan, rather than a collection
of individual loans. As such, you will generally have only one payment to
make each month, and will be able to borrow up to a percentage of the value
of the assets secured under the facility.
Often, the lender will agree to pre-approved parameters for security scaling
and terms for the various types of assets you might intend buying –
that way you know where you stand throughout the year. It effectively turns
you into a cash buyer.
CrediFlex will arrange approval and ongoing maintenance of the facility with
a suitable lender as appropriate, ensuring you are always prepared for that
next purchase.
Email us at talktocrediflex@crediflex.co.nz
or call us on 09 445 0002 to find out more.
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