Small Business Line of Credit

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Mercy Corps Northwest is pleased to announce our new business line of credit, giving businesses the flexibility to draw out money up to four times per year with only one simple approval. It’s easy, has a competitive interest rate, and allows flexible access to funds.

 

Line of Credit Limit Repayment Terms Annual Percentage Rate Fees
$500-$20,000 1 year with up to 4 advances 8%-12% APR 2% + out of pocket costs

 

Uses for Line of Credit

  • Inventory purchases for manufacturers or retailers
  • Advances on accounts receivables
  • Working or operating capital
  • Other uses may be considered as well

Funds cannot be used for:

  • Business operating deficits
  • Personal income
  • Emergency situations
  • Pre-Startup research and development
  • Speculative property (real estate, stock, collectibles)
  • Non-accredited training, seminars, or workshop fees or educational materials
  • Businesses engaged in illegal activities or activities deemed to be socially or environmentally degrading

 

How does it work?

  1. Submit an application, showing sufficient demand for products through orders, invoices and previous business history.
  2. Get approved up to your line of credit limit (similar to a credit card limit).
  3. Use those funds for purchasing inventory or for working capital
  4. Pay interest only payments until you sell your goods or collect your receivables – then, you repay the loan in full.
  5. Principal payment is due 30-120 days after advance depending on need.
  6. Once the loan is repaid in full, you may draw funds again up to a total of four times in the 12 month term.

 

What Does it Take to Qualify?

  1. Minimum of one year in business with demonstrated revenue and profits.
  2. Normal underwriting standards apply, including analysis of your credit, collateral, client investment, financial capacity, cash flow and experience.
  3. Ability to demonstrate demand and profitability – from orders, invoices and previous history.

 

Four Great Reasons to Borrow with Mercy Corps Northwest

  1. One approval means the ability to borrow for one year – Once approved, you will be able to flexibly draw funds for one full year. You only need to reapply once a year.
  2. Build your credit – We report to all three major credit bureaus, so your timely payments will help to repair or build credit history.
  3. Access to capital – A line of credit allows you to draw out funds up to four times per year, to buy inventory, cover cash flow shortfalls, give you time to collect receivables.
  4. Save on interest – You only pay interest on the amount you have outstanding, so as soon as you pay back the advance, you stop paying interest.

 

 

What’s next? 

 

Contact one of our loan officers to find out more or to schedule an appointment.

 

In Oregon: Ben Misley – ph #503-349-2194, email bmisley@mercycorpsnw.org

Andrew Volkman – ph #503-869-5089, email avolkman@mercycorpsnw.org

 

In Washington: Che Wong – ph #206-547-5212, email cwong@mercycorpsnw.org

Edwin Rios – ph  #206-939-2590,  email erios@mercycorpsnw.org

 

 

Link to Washington page for Mercy Corps.