BEO Show

Fifth Third Bank’s Keith Richey teaches how to obtain and utilize a line of credit

Keith Richey, VP Financial Center Manager for Fifth Third Bank in Carmel, Indiana, has been working with business owners for years. In today’s “Accounting and Bookkeeping” segment, he offers lessons on how to utilize a business line of credit as a way to access working capital when you need it.

Richey says that a line of credit is a great source of short term capital for businesses. For example, a line of credit can help if your business is growing and has a shortfall in capital to produce your product.

Richey also said Financial Center likes for businesses to have been operating for at least two years before they look to establish a line of credit. If your business is newer, he advises to look at other sources of capital such as venture capital or angel investors.

Also, Financial Center typically looks at a line of credit that is up to 15% of a company’s gross revenue. Richey said he looks at things like a business’ cash flow and expenditures in order to guide their banking.

For more general information on Fifth Third Bank, click here. And for information specifically on Business Loans and lines of credit, click here.