Establishing a line-of-credit with AEA Federal Credit Union can maximize your purchasing power and allow you flexibility in managing your business. The advantage of a line-of-credit is interest is only charged on the amount used. And, as payments are made, your credit line once again becomes available for your use.This simple and easy to use financial tool is perfectly suited to:

▪ Cover short-term cash needs until accounts receivables are collected
▪ Take advantage of supplier discounts
▪ Cover seasonal working capital needs

Lines-of-credit are renewed annually providing flexibility to your business' short-term funding requirements by allowing borrowings to match needs, precisely when needed.

Lines-of-credit are established at specific limits and may be either paid up or drawn down throughout the year at your discretion. These are the most cost-effective credit facilities and are distinguished from term loans by the "use of proceeds" and may require a consecutive thirty-day clean-up period at some point during the year. Accounts receivable, inventory, and other business assets secure your line of credit.

Whether you're updating your office or expanding your warehouse, a term loan is just what your small business needs. A term loan allows you to benefit now from your business' future cash flow increase.

Term loans are commonly used for:
▪ Purchases of machinery, equipment, furniture, fixtures, and leasehold improvements
▪ Business acquisitions
▪ Additions to long-term, or core, working capital requirements
▪ Expansion or modernization of facilities
▪ Vehicles or other business transportation

Term loans are typically repaid by the enhanced cash flow from these assets. The maturity of a term loan depends on the productive life of the assets financed. For example, a term loan used to buy computers will be shorter in duration than a loan to purchase manufacturing equipment.

AEA Federal Credit Union offers competitive financing for your commercial real estate needs. This includes the purchase of existing buildings, refinancing current loans or construction of new buildings. These types of loans are most frequently used for:

▪ Commercial properties, both owner and non-owner occupied
▪ Residential housing projects
▪ Combination business/residential properties

The structure of commercial real estate loans depends on the unique circumstances of each transaction, but generally, these types of loans amortize principal over a set period, with interest rates fixed over a three or five-year index, on maturities of up to ten years.

Our Trade Finance products help you efficiently facilitate business-to-business transactions through use of Letters of Credit. These instruments usually guarantee international shipments, or serve as cash deposits or performance bonds.