Transcript: Managing cash flow with the right mix of credit options

Whether you run a bakery, an accounting firm, a construction company, or anything in-between, your need for cash may fluctuate. A mix of credit options may help. 


Wells Fargo offers a wide range of credit options to meet a variety of credit needs, from covering everyday expenses to supplementing cash flow, financing vehicles, equipment, commercial real estate or business expansion. 


Take Maria, for example. She owns a large bakery near the center of town, and her cupcakes are her forte. They’re so good that customers line up to buy them each morning. The growing demand of her business may involve expanding her bakery’s equipment. 


Maria would like to learn more about potential financing options to help her expand her business. Her banker listens to her needs and provides options for Maria to help her make informed credit choices so she can grow her business. 


Maria applies, and is approved for an equipment loan to finance the upgrades. Her loan provides her 60 days to use the funds. Now she has time to shop for what she needs, with the peace of mind that she has the money to cover it. 


In the meantime, she needs to keep the cupcakes moving. Her inventory and supplies add up, from boxes to foil to cupcake papers. Maria can pay for these expenses using her business line of credit. It provides her with convenient access to funds when she needs them and the flexibility to use them, pay them down, and reuse them over time. 


Maria’s not the only one expanding her business. Her accountant, Thomas, is doing some upgrading of his own. Thomas just ended his busiest tax season ever, so he thinks now may be the right time to expand his office. He applies for a commercial equity line of credit. 


Thomas wants to use his commercial real estate property as collateral to finance his office renovation and business expansion. After credit qualifying, Thomas is approved for a line of credit with a payment plan that works with his budget and cash flow needs. 


In addition to a commercial equity line of credit, Thomas is interested in a business term loan to help him cover critical one-time purchases: new computers, software license, and furniture to fill the expanded space. 


He’ll pay a set amount each month to pay off the purchase by the end of the loan’s term, to help make it simpler for him to budget and control his business costs. 


While Thomas checks items off of his to-do list, his contractor, Warren, considers his list. Warren’s small fleet of trucks has gotten him and his crews to jobs for the past 10 years. A few of his vehicles have recently become less reliable. 


Replacing those trucks is a big expense, so Warren applies for an equipment loan to pay off the purchase of new trucks over six years. He gets preapproved so he can shop confidently knowing he has the funding in place. 


With his crews traveling from job site to job site in those new trucks, Warren needs to stay on top of their expenses. He applies for, and is approved for a business credit card for each of his crew managers. He gives each crew manager a business credit card to purchase gas and everyday items like paint and hardware. Warren is able to track his crew’s expenses while keeping jobs running smoothly and efficiently. Plus, he can choose to earn cash back or rewards points at the same time. 


Maria, Thomas, and Warren own very different businesses. Each is looking for a mix of credit options to help them manage cash flow today and into the future. 


To find out how Wells Fargo can provide the appropriate mix of credit options, talk with your banker or visit WellsFargo.com/biz. 


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