Lines of Credit
Got liquidity? When is the last time you checked your liquidity levels? Is your loan portfolio growing? Do you have seasonal inflows and outflows of shares? Have your regulators requested you investigate obtaining or increasing your liquidity sources?
In today’s financial market, the ability to obtain and maintain a line of credit has become both critical and difficult. It may not only be challenging to obtain a line of credit, but lending institutions may require you to either pay fees based on the size of your line of credit or may charge a monthly fee if the line is not accessed.
Some institutions look to their Federal Home Loan Bank (FHLB) for their liquidity needs; but the ability to borrow from the FHLB is limited both by membership, and also by the ability to maintain acceptable levels collateral with them, which must also be safekept there. Others believe the Federal Reserve to be a possible liquidity partner; however, the Federal Reserve discount window typically is considered to be the lender of last resort, so everyday liquidity needs may not qualify for this funding source.
We at Corporate One help members everyday fulfill their liquidity needs. Working with our lending staff, partner members can establish a line of credit. A line of credit with us represents a pre-determined maximum aggregate borrowing limit with interest only paid on amounts drawn against the line. Upon the establishment of a line of credit, a member can access funds using our various loan products:
- Certificate-Secured Loan
- Settlement Loan
- Demand Loan
- Fixed-Term Loan
In addition to advised lines of credit, we also offer committed lines of credit to our partner members. Advised lines of credit are free of charge for our partner members, with market-rate fees for committed lines of credit.
Obtaining a line of credit with Corporate One is simple and straight-forward. Working with your credit union, our lending staff will obtain an understanding of your liquidity needs, financial position and available collateral. Once the line of credit is approved, an appropriately sized line will then be determined. Again, lines of credit for Partner members are free of charge with no annual or monthly fees and members only pay interest on funds drawn from their line of credit.
As a partner member of Corporate One, you not only benefit from our diverse suite of the settlement services, innovative correspondent and investment solutions plus superior member service, you have access to liquidity from one of the strongest corporate credit unions in the nation.
For further information regarding our Line of Credit program please contact a member of our Lending Department at 866/MyCorp1 (866/692-6771) or request additional information through our website at http://www.corporateone.coop/About-Us/Contact-Us.aspx.
Denise Brown can be reached directly at 866/MyCorp1, ext. 9367 or at dbrown@corporateone.coop.