Supplemental Line of Credit
The Supplemental Line of Credit allows capitalized members of Alloya to increase their existing Advised Line of Credit without contributing additional capital. It is a flexible solution, enabling members to position their liquidity to meet seasonal cycles and fluctuating business demands throughout the year.
In most cases, no additional collateral needs to be pledged. However, special circumstances may require collateral to be pledged to secure the additional line. The Supplemental Line of Credit can be accessed once the primary line is at full capacity, for either settlement or term loans less than one year in duration. Members seeking to increase their line by utilizing the Supplemental Line of Credit pay an annual credit review fee of 0.15% (renews annually). Compare this to the 1% origination fee and the 0.25%-1% unused fee that banks typically charge. Members can increase their line to suit their needs (within legal lending limits and subject to credit approval).
The Supplemental Line of Credit is available to members who have contributed at least the minimum required capital amount, as per Alloya’s Private Placement Memorandum, or the minimum required based on the scheduled reassessment of capital contributions (related to settlement activity).