Cash flow is important for every business, regardless of how profitable it may look on paper. A monthly or quarterly profit & loss statement might show positive earnings, but that doesn’t always translate to available cash. The real challenge is having the liquidity to cover day-to-day obligations like payroll, fuel, utilities and rent.

What if your company is short on cash to pay for these short-term expenses? These obligations need to be paid in a timely manner in order to avoid any interruption in business activities. This is a common problem for companies in the service industry or supply warehouses, where accounts receivable may be high, but collections lag behind the pace of outgoing payments.

So how can business owners bridge the gap? The answer is to have a working capital line of credit available as a source of cash to help cover short-term expenses and keep the business running smoothly.

A business line of credit provides a safety net solution that is both flexible and less costly than credit cards or term debt. A line of credit is revolving, just like a credit card, so it can be used and then paid down when receivables are collected. This is beneficial because interest is only charged on the outstanding balance, so you only pay for what you use…unlike term loans, which accrue interest on the full borrowed amount, even if it’s sitting idle.

Accessing funds is simple: request a draw by contacting your commercial lender or if you are a First Community Bank and Trust business account owner set up with online access, you can initiate a draw through First eBiz. It’s that easy!

Wondering about collateral? Most business lines of credit are secured with a blanket lien on all business assets including inventory, accounts receivable and equipment. A business life insurance policy can be included as added security as well. Depending on the line of credit amount or financial condition of the company, additional collateral may be required.

If you believe a line of credit could benefit your business, please contact John Lockie, Senior Vice President – Commercial Lending, at (708) 946-3445. John would be happy to discuss your needs, answer any questions, and walk you through the application process. He brings years of experience helping businesses find the right financial tools to support growth and manage cash flow effectively.

About First Community Bank and Trust
First Community Bank and Trust is a privately-owned bank. Established in 1916 First Community Bank and Trust has been serving Beecher, IL, Peotone, IL and the surrounding communities for over 109 years. Our commitment to providing the best banking products and services is matched only by our outstanding customer service. We offer traditional community banking services, including mortgage, consumer, and commercial lending, as well as state of the art electronic banking services.

Press Contact:
Steve Koehn, Senior Vice President
First Community Bank and Trust
(708) 946-2246

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