Line of Credit, what you need to know

What is a Line of Credit?

A line of credit is similar to a credit card.  It’s a flexible loan that offers you a specified amount of money that you can access, in whole or in part, as needed.  This “revolving” credit account lets you borrow (add to your balance) as often as you need. After borrowing you are required to make monthly payments to repay your outstanding balance, just like a credit card.

A line of credit is intended to help businesses meet short-term cash needs, like purchasing supplies or inventory.  For Right Way Medical customers, this is often useful to cover increased equipment or disposable needs before you’ve received the corresponding revenue.

Benefits of a line of credit

  1. Get what you need, when you need it
  2. No interest until credit is used
  3. Interest is typically much lower than credit card
  4. Credit available when you need it without repeated loan applications
  5. One-year interest only payments *
  6. Converts to 60-month term note after 12 months *

* Right Way Medical specific

Disadvantages of a line of credit

  1. While cheaper than credit cards, they are more expensive than traditional secured loans
  2. In most cases, the interest on a line of credit is not tax deductible

What’s the bottom line?

For one-time equipment purchases, you are best served by talking to Right Way Medial about capital and operating leases.  However, to cover multiple purchases over time, our line of credit is perfect.  It may seem easier to use a business credit card to cover cash flow, but if you can’t pay your balance in full each month you’ll end up paying much more in the long run.  Our line of credit offers interest only payments for 12 months, after which you line is converted to a term note of up to 60 months.  Call us today to discuss how we can set up your line of credit.

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Prior to founding Right Way Medical, Prati held various roles with Apria Healthcare, B. Braun Medical, and Medical Technology Resources, where his final role was Sr. Vice President of Sales and Operations. During his time serving at Medical Technology Resources he was influential in assisting in its acquisition to Medical Specialties Distributor, a company that has since been acquired by McKesson in 2018.

Prati has been involved in various philanthropic organizations including The Make-A-Wish Foundation, A Kid Again, Orphan’s Promise and has served in various board and volunteer roles at Cypress Wesleyan Church (Alton Darby and Dublin campuses) and the Vineyard Church of Columbus.

Josh Prati resides in Powell, Ohio with his wife Christa and two cats, Remey and Molly. He enjoys working out, developing relationships over a home cooked meal, great wine, and is an avid Ohio State Buckeye and Pittsburgh Steeler fan.