What is a Warehouse Line of Credit?
	Recently, you may have heard of the over usage of warehouse lines of credit among mortgage banks and finance companies. Unlike traditional business LOC, a warehouse line of credit is used exclusively by finance companies and mortgage banks. Traditional banks take deposits and then make loans. A company that uses a warehouse line of credit does not accept deposits. Rather they borrow money from banks (or by selling bonds) so that they can provide credit facilities (typically mortgages and real estate secured lines of credit) to businesses and homeowners. Warehouse lines of credit are typically not used for business purposes. Although this article is not directly related to obtaining a business loc, hopefully it will provide you with some insight into the world of lending. When a finance company uses a warehouse line of credit – again – they borrow from others to make loans to someone else. Once the finance company “closes” then loan or line of credit, the mortgage or credit debenture is sold to a third party. Often this third party is the same bank that provided the finance company with the warehouse line of credit. These companies earn money in three ways. First, they generate fees from borrowers that undertake business loc, mortgages, or other credit facilities. These are often referred to as closing points. Second, they earn interest income from the loan during the time that they hold the loan or credit line. This is usually the smallest segment of a finance company’s revenue centers. Third, finance companies may earn a premium from selling the closed loan to a bank or securities aggregator. Typically, these premiums range from 1% to 3% of the credit facility’s face value. In total, a finance company that uses a warehouse line of credit earns a fee of 4% to 5% on the face value of the loan.
	Below are a number of articles that you can read that will assist you in obtaining a business LOC:
	Business LOC vs. Business Loan Securing a Business LOC Do You Need a Business Plan to get a Credit Line? How has the Economy Affected People's Ability to get Credit? Unique Business LOC Types Property Rehab Loans and Lines of Credit What is a Warehouse Line of Credit? Businesses Best Suited for a Business LOC Alternatives to Business Credit Facilites Using Personal Credit Cards Instead of Business LOC The Mechanics of a Business Loan The Mechanics of a Business Line of Credit Importance of Establishing a Business Line of Credit Using a Business LOC for Startup Capital Questions That Will Be Asked By Your Banker The Importance of Personal Credit When Obtaining a Business LOC What is an SBA Backed Business Line of Credit? Determining How Much You Can Borrow Through A Business LOC How a Business Line of Credit Should Be Used Comparing Offers from Banks for Business Lines of Credit Business LOC and the Concept of Leverage Secured Vs. Unsecured Business Line of Credit Using a Business Loan/Credit Line Brokerage Repayment of a Business LOC Commonly Used Terms in Lending Using a Small Bank to Obtain a Business Line of Credit New Business Line of Credit Business Revolving Line of Credit Overdraft Line of Credit Small Business Lines of Credit Accounts Receivable Backed Lines of Credit