When your initial 24-month term for Power Line of Credit is ending, you have four options for any remaining balance at the end of the draw period. Our lenders are ready to assist you with the option that best suits your business needs.
OPTION 1: Term-out line of credit. At the end of the revolving period, the remaining balance is termed-out at the current interest rate to regular, monthly payments based on your remaining balance.
OPTION 2: Term-out line of credit over an extended term, as discussed with your lender. This option could lower your monthly payment. It will require additional documentation to process the new terms of your loan.
- We'll need your most recent year-end financial statement to determine your new monthly payment.
- We'll also need to know: What is your desired monthly payment?
OPTION 3: Keep your line of credit and obtain another 24-month revolving period. After a one-month rest period and review of financial and tax information, this option will potentially renew your Power Line of Credit for another 24-month revolving period, with no change to the limit.
- Requirements: The line needs to “rest” for one month, meaning you carry a $0 balance on the account during this time.
- In the meantime, you will be asked by the lender to provide your most recent year-end financial statement and most recent tax return.
OPTION 4: Request an increase to the limit on your Power Line of Credit. After the rest period and review of financial and tax information, this option will potentially renew your Power Line of Credit for another 24-month revolving period for greater spending power.
- Requirements: The line needs to “rest” for one month, meaning you carry a $0 balance on the account during this time.
- In the meantime, you will be asked by the lender to provide your most recent year-end financial statement and most recent tax return.
- Collateral will be required to increase the line of credit.
Connect with a lender and tell them how you’d like to move forward.