Direct Commercial Funding Notes Uptick in Business Credit Lines
Calvin D. Blake of Direct Commercial Funding said that the ongoing economic recovery has included a greater use of business line of credit financing than in recent business quarters.
“We’ve seen a resurgence of interest by borrowers who want to maximize their borrowing power based on current receivables, inventory and other potential assets which can actually be margined for temporarily liquidity — pointing not only to a strengthening economy but also to increasing confidence in the economic recovery now under way,” Blake said.
Business line of credit financing is based on a number of criteria related to the revenue history and current financial condition of subject business. We want to see strong financial stability, strong cash-flow, and a profitable outlook are key factors, he noted.
Industry sources note that business line of credit financing has continued its growth through the first quarter of 2013. According to figures compiled by Blake’s firm, requests for such financing have increased by approximately 10% to 15% each month over the last three business quarters.
He believes this trend will continue as the domestic economy continues to strive.
Houston, TX-based Direct Commercial Funding is a private commercial lender delivering customized solutions and a full menu of loan and financing programs. It serves commercial business owners, developers, investors and commercial real estate professionals.