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A Line of Credit allows your company to borrow against an established credit limit for short-term working capital. Borrowings are payable on demand, and interest rates are usually tied to the current Prime Rate. A Line of Credit can be secured or unsecured. If secured, the collateral is usually "short-term" assets, such as receivables and/or inventory. Because we prefer to develop a relationship with our customers, we do ask that your company maintain its operating accounts with us. Lines of Credit are subject to review at least annually.

Unlike a Line of Credit, a Revolving Credit is the bank's firm commitment to lend up to a certain amount until a specific maturity date (up to five years). This commitment is subject to a loan agreement containing mutually agreeable terms and conditions. Revolving credits are to be paid in full at maturity, most often with the proceeds of a term loan having a monthly repayment schedule over an extended period. Interest rates are usually tied to the Prime Rate.

A fee generally is charged for a Revolving Credit commitment. This is a monthly charge from 1/4% to 1/2% per annum on the average daily-unused portion of the committed amount.

A Term Loan is ideal for financing "long-term" assets such as buildings, equipment, leasehold improvements and permanent working capital. Term loans are usually payable in monthly installments over three to seven years. Terms for real estate projects can be extended for up to 15 years. In either case, payments can be based on longer term amortization schedules. Interest rates can "float" with the Prime Rate, or can be fixed for up to seven years. Such fixed rates are based upon an increment over base rates published by the Federal Reserve. (For a general explanation of interest rates and indexes used by various financial institutions, click here

If you are interested in income producing investment real estate, click here for information and assistance from our Real Estate Lending group.

A Letter of Credit (L/C) is a financing vehicle that essentially substitutes the credit strength of the bank for that of your company. Dollar Bank issues Standby L/Cs to support third party loans, performance guarantees and other obligations of your company. Documentary L/Cs to support domestic and international trade are issued either as a direct obligation of Dollar Bank or as an indirect obligation through one of our international banking correspondents.

Dollar Bank offers loans to be used in conjunction with lending programs developed by federal, state and local governments, such as the Small Business Administration's 504 Loan Program, Pennsylvania's PIDA Program and Ohio's Enterprise Bond Fund. These programs can help to provide financing with terms that might not be available through conventional bank loans. We are experienced in identifying the program that will work best for your particular business situation. (For more information on the types of financing programs available in southwestern Pennsylvania, click here or northeastern Ohio,click here.)

Dollar Bank has the capability of handling international banking transactions through our affiliations with international banks. These transactions include documentary letters of credit, international collections, foreign credit inquiries, currency exchange and international wire transfers. In addition to these services, we have worked with the Export-Import Bank and its guaranteed loan program to provide financing for customers exporting goods overseas.