Repayment is made from the sale of inventory and collection on receivables created during the season. The Seasonal Line can be revolving or nonrevolving. One contract line can finance more than one contract. Builders Line Finances the direct labor and material costs for small general contractors and builders that construct or renovate commercial or residential buildings. Repayment comes from converting short- term assets into cash and remitting this cash to the lender.
Businesses continually draw and repay as their cash cycle dictates.
This line of credit is generally utilized by businesses that provide credit to other businesses. These loans require periodic servicing and monitoring of collateral, for which additional fees are usually charged by the participating bank. Each of the five lines of credit has a maturity of up to five years. However, to meet the needs of the applicant, a shorter initial maturity can be established. CAPLines funds may be used as needed throughout the term of the loan to purchase short-term assets, as long as sufficient time is allowed to convert the assets into cash by maturity.