BCNA provides revolving line of credit loans to experienced, stable micro and small businesses that cannot access a LOC product through major banking institutions. Our LOC loans range from a minimum of $10,000 to a maximum of $50,000. Unlike BCNA term business loans, the borrower is only required to pay interest on the money actually withdrawn on a monthly basis.
Check our Loan Requirements to make sure you qualify and if you have any questions, contact our loan staff below.
Loan Requirements and Costs
- Funds for financing project/contract specific, accounts receivable/payables financing, short-term inventory purchases, and cyclical operating expenses. This product is not suitable for long-term fixed asset financing, nor for normal operating expenses for a prolonged period. Borrower is required to show documents validating the use of funds.
- Interest only payments on a monthly basis on 1st or 15th. Interest only applies to funds drawn (outstanding balance) under the business line of credit. The outstanding principal balance is paid in full* at end of term or prepaid at discretion of client when paid by vendors. The .25% charge for each drawdown is paid at the next billing cycle via ACH following the disbursement/drawdown, in addition to the interest.
- Secured with UCC filing on business assets, if applicable.
- Lending Tier is $10,001 to $50,000
- Guarantor(s) required, in accordance with BCNA loan policies.
- Reported as Line of Credit Account Type 9B—business line personally guaranteed.
Interest Rates and Fees
- Fixed interest rate at 10%
- Maximum term up to 1 year with payment of complete outstanding balance required at 12-month period, or earlier at the discretion of the borrower. Renewal highly likely if client demonstrates proper use of funds and positive cash flow.
- Closing fee 2% of full LOC amount for 1st year, paid at initial disbursement/closing date.
- Access to Line of Credit limited to once a month
If you have any questions, contact our loan staff below:
Manhattan – 212 898 4167
Queens – 347 649 1488
*Loan Officers may recommend full payment in less than a year.