Equine & Livestock

Spring/Summer 2020 Equine & Livestock

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18 Covetrus | ph: 855.724.3461 | fx: 888.329.3861 | northamerica.covetrus.com Some, but not all, banks charge a monthly maintenance fee if you do not use the line of credit, and interest is charged as soon as money is borrowed. Most often, the terms of the line of credit are usually annual, with an interest rate based on the prime rate plus one to three percent. Line of credit payments usually are interest-only on the amount borrowed, but banks expect that line of credit to be paid off completely during the year. Make sure to apply for a line of credit while you are in a comfortable financial position in order to qualify for the credit. Don't wait until you desperately need money before applying! Because a line of credit can be borrowed against and repaid on an unscheduled basis, some veterinarians might find the interest calculations more complicated. And that might result in them being surprised at the amount they end up paying in interest if they do not repay the principle promptly. While a line of credit can smooth out a rough patch in income until your business is producing strongly again, note that a line of credit should not be used to rescue a practice that is experiencing a serious ongoing financial crisis. A line of credit should be used as a tool to use while waiting for your accounts receivable to be paid. Lines of credit are meant to be used, paid off quickly, then used again when necessary. Most veterinarians or vet practices have a line of credit established with a bank. This is often used to meet financial obligations during the low-income months of the year, which is common due to the seasonality of equine veterinary business. Covetrus offers a range of solutions that will better position your business to discover valuable ways to accelerate growth and save money. Our experts will work with you to provide strategies that will help you achieve your business goals and create avenues for continued financial success. https://equimanagement.com/articles/how-to-use-a-line-of-credit Source: Using a line of credit

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