The revolving credit line is immediately available for eligible foreign trade financing.
The new revolving credit line carries a favorable variable rate of 30-day LIBOR plus 3.00%. The LOC will be monitored by the Fulton International Group and is considered an initial credit line, with the potential for increases to the LOC loan total in the future.
“This is a great resource for our international financing needs, because it is the kind of commercial credit that can expand over time as our relationship grows with The Columbia Bank,” explained CEO Anshu Bhatnagar. “At our current size, getting a line of credit for international trade from a U.S. bank is gratifying, because international credit is not easy to attain.”
Verus can immediately begin to deploy this source of funds for new business. Based on current average inventory turns, the company anticipates that the LOC can generate from $7 million to $10 million in annual revenue (depending upon the product mix).
Gaithersburg, MD-based Verus International operates an international food subsidiary (Verus Foods) that sells branded consumer products to customers worldwide.