Line of credit statement
What is a line of credit statement
A line of credit statement is a document that shows the current status of a line of credit account. It typically includes information such as the credit limit, the current outstanding balance, the available credit, and the minimum payment due. It may also show transactions such as recent payments and charges made to the account. The statement is usually provided to the borrower on a regular basis, such as monthly or quarterly. It's a document that summarize all the credit activities of the borrower.
Why is this important to a lender
Your lender may be asking to see your line of credit statement for a few reasons. One of the main reasons is to ensure that you are maintaining your payments and staying within the terms of your loan agreement. The lender wants to make sure that you are using the line of credit responsibly and that you are not overextending yourself financially. Additionally, the lender may be required by law to check your credit status and ensure that you are still eligible for the loan, in which case they would need to see your line of credit statement. Finally, if you are applying for a new loan or credit line, the lender may want to see your line of credit statement as part of the underwriting process to determine your creditworthiness.
How to prepare this document
As a business owner, you can access your line of credit statement by logging into your account online or by contacting your lender directly. Many lenders provide online banking services that allow you to view your line of credit statement and other account information online. If you prefer to receive a paper statement, you can contact your lender and request to have one mailed to you.
You may also need to provide some identification and proof of your business ownership.
If you have any trouble accessing your statement, you can contact your lender's customer service department for assistance.