Union Bank, a subsidary of San Francisco-based UnionBanCal Corporation, has introduced new business line of credit – the Union Bank Business OptionsLine. It assists clients to convert some or all of their outstanding balance on a business line of credit to a fixed-rate, fixed-term loan or ‘unconvert’ the term loan back to the line of credit.
Reportedly, the Business OptionsLine offers two products in one account. Clients may use one account as a line of credit, a term loan or both. If the client converts a credit line balance to a term loan, the principal payments on the term loan may then become available on the business line of credit. Additionally, in a declining interest rate environment in which a client may have a term loan locked in at an interest rate higher than that available on a business credit line, the client may choose to ‘unconvert’ the term loan back to a business credit line.
Joseph Benoit, small business banking executive, Union Bank, said: “With the understanding that small businesses may need an immediate source of cash for working capital, seasonal purchases, new inventory, trade discounts, or carrying accounts receivable, Union Bank is pleased to introduce a flexible business line of credit that offers clients enhanced choice, convenience and control. The Business OptionsLine enables clients to choose the collateral type that best meets their needs while providing convenient, instant access to funds without depleting cash on hand.”
