WCMA Reducing RevolverSM Loan
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A Term Loan That Acts Like a Line of Credit

Combine term financing with the convenience of revolving credit through our innovative WCMA Reducing Revolver Loan. Financed through your Working Capital Management Account® (WCMA® account), a Reducing Revolver enables you to reduce interest expense by borrowing only what you need, prepay without penalty, and re-borrow prepaid amounts on a revolving basis.

  • Reduce interest expense compared to a traditional bank loan by automatically paying it down through your WCMA account
  • Regulate cash flow with the planning of a conventional term loan
  • Re-borrow any prepaid amount, whenever you need it, with easy funds access
  • Gain flexibility from a floating interest rate

 

How the WCMA Reducing RevolverSM Gives You Increased Flexibility

With the WCMA Reducing Revolver, you can repay the loan at any time without penalty. Plus, you can re-borrow any prepaid amount up to your credit limit without having to reapply.

Your Financial Advisor can provide a customized comparison based on your particular financing needs.

WCMA Reducing Revolver Loan Features

Loan range

Loans start from $1,000,000.

Terms

Credit availability is reduced on the last business day of each month, based on an amortization schedule typical of a term loan.

Collateral

Typically secured by collateral, such as real estate, equipment or securities.

Interest rate

Floating, with periodic adjustments based on rate changes.

Fee

Both fee and no-fee term loans are available.

Frequently Asked Questions About the WCMA Reducing Revolver Loan

What is a WCMA Reducing Revolver Loan?

A WCMA Reducing Revolver Loan is a term loan that acts like a revolving line of credit. It allows you to reduce interest expense typically associated with a term loan by borrowing only what you need, prepaying without penalty through your WCMA account, and re-borrowing prepaid amounts on a revolving basis.

How can a WCMA Reducing Revolver Loan be used?

A WCMA Reducing Revolver Loan is most suitable for companies that anticipate excess cash or that have predictable seasonal cash flow to:

  • Finance real estate
  • Buy equipment
  • Refinance long-term loans

How does the WCMA Reducing Revolver Loan work?

Your credit availability is reduced on the last business day of each month, based on an amortization schedule typical of a term loan. Excess cash in your WCMA account is used to prepay the loan without penalty. Any prepaid amount can be re-borrowed on a revolving basis, subject to availability as reduced on the last business day of each month.

 

Related Products & Services

For your business financial needs:

For your personal financial needs:

For more information call 1.866.4ML-BUSINESS (465-2874) or e-mail us at AskMLBiz@ml.com.

Merrill Lynch, Pierce, Fenner & Smith Incorporated is a registered broker-dealer, not a bank, and the WCMA account is not a bank account. Banking services are provided by licensed banks or by third parties through arrangements with licensed banks. Unless otherwise indicated, investment products are not FDIC-insured, not guaranteed by a bank and may lose value.

Working Capital Management Account, Loan Management Account, WCMA and LMA are registered service marks of Merrill Lynch & Co., Inc.

The WCMA® account is a product of Merrill Lynch, Pierce, Fenner & Smith Incorporated.

The WCMA® Commercial Line of Credit, which is linked to the WCMA® account, is offered through Merrill Lynch Commercial Finance Corp.

Term loan financing and the WCMA Reducing Revolver Loan are offered through Merrill Lynch Commercial Finance Corp.


Financing, including the WCMA Reducing Revolver loan, is through Merrill Lynch Commercial Finance Corp., 222 North LaSalle Street, 17th Floor, Chicago IL 60601-California Loans made pursuant to a Department of Corporations California Finance Lenders license.  Programs, options and property types are not available in all states and are subject to change.  Certain conditions, restriction and costs may apply, Not all features are available with all programs.  All loans are subject to credit review and approval. 

WCMA Reducing Revolver is a service mark of Merrill Lynch & Co., Inc.

Should the value of securities pledged as collateral decrease below a certain level (as specified within the loan document), the deposit of additional assets and/or liquidation of assets may be required. Securities-based loans cannot be used for investment purposes. A complete description of the loan terms can be found in the Loan Agreements. When considering Merrill Lynch financing, take into account your individual requirements, portfolio makeup and risk tolerance, as well as capital gains taxes, portfolio performance expectations and investment time horizon.