Escrow and Revolving Lines of Credit

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• Escrow Service:
o Service that deducts, holds, and pays ~75%-100% of what you expect to pay out in Large one time cash flows like Quarterly Taxes, Bond Interest Payments, Executive Bonuses, etc. for cash flow management purposes for a small fee 1%-2% Account Value.

• Revolving Lines of Credit:
o Inventory (Secured) Line of Credit
- Line of Credit Used exclusively for Inventory Purchases that allows you to borrow up to ~75%-100% of Inventory cost at reasonable interest rates.
- Background: Retailers often finance their Inventory using a line of credit secured by their inventory. For Retailers it is usually called Inventory Line of Credit, Auto Dealers call it Floorplan, etc.
o General/Basic Line of Credit
- Line of Credit that allows you to borrow X% of Assets or X% of last years Revenue or Expenses to help manage cash flow.