Lines of Credit | Mizrahi Tefahot Bank LTD

Lines of Credit

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Access capital, when you need it, with a Startup Line of Credit from UMTB

At UMTB, we provide revolving credit lines specifically tailored to meet the financing needs of technology startups. Whether you need financing based on recurring revenues., Account Receivables (AR), Purchase orders (POs), Inventory or cohort performance – our tailored credit lines provide the capital you need, precisely when you need it.

Features and Benefits

With a line of credit from UMTB, your tech company can:

  • Gain access to capital on your own schedule, paying back and drawing upon the line as much as you need.
  • Leverage assets and expected revenue to invest in growth initiatives
  • Fulfill purchase orders and cover associated costs
  • Gain access to working capital to bridge the gap between invoicing and customer payments

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What is a line of credit for startups?

A line of credit for startups is a revolving credit facility specifically designed to meet the financing demands of technology startups. It provides companies with access to a predetermined amount of capital that can be drawn upon as needed, repaid, and drawn upon again, over its term – thus minimizing financing costs. Advance ratios associated with these credit lines will vary depending on each startup's financial profile.

What is a recurring revenue based (MRR, ARR) line of credit?

A recurring revenue line of credit enables companies to leverage some of their revenue from future periods to invest in growth opportunities and cover occasional expenses. If your business receives regular recurring revenue, this line of credit can help you utilize expected income to periodically access capital quickly and efficiently.

What is the role of purchase orders (POs), accounts receivable (AR), and inventory in lines of credit?

Startups with confirmed purchase orders, a steady stream of accounts receivable, or large stores of inventory may be able to use their assets and expected income to secure a line of credit. Credit lines may be provided based on a percentage of the confirmed purchase order value, outstanding accounts, or value of your inventory. A line of credit can be used to fulfill orders and cover associated costs, bridge the gap between invoicing and customer payment, and help manage supply chain demands.

What is cohort financing?

Cohort financing focuses on specific groups of users within your platform. It leverages the monetization potential of these cohorts, providing a unique financing model based on their performance and revenue generation. Cohort financing offers a fresh approach to funding growth and expansion, going beyond traditional metrics like revenue and user growth.