We interviewed more than 125 charter school operators and they told us that they wanted a bank line of credit.
Lumen Network responded by developing a Line of Credit for charter schools – recognized as the most efficient form of working capital financing.
How does the Line of Credit Work?
(Banks often require that a LOC have a zero balance during each year, often called a clean-out period. We do not require a clean-out.)
(Confidence that you are covered)
*So long as the balance stays under the approved amount, you control the timing of when you pay down the balance or take money out. Additional Disclaimer Language in Progress.
Simple All-In Pricing
•Rate: 5.5%-7.5% based on school credit, tied to WSJ Prime
(you will always know what the cost of capital is to you – no secrets and no mark-up!)
Table of Financing Options
Lumen: Bank Line of Credit scaled to cover usual working capital needs + deferrals
LOC: Line of Credit. Draw funds when needed and payback when desired.
Term Loan: Funded all at once with a predetermined payback schedule.
Sale: Receivable sale – sell future payments for cash now.
TRAN (Bond): Tax Receivable Anticipation Notes: Funded in one step with a predetermined payback schedule. Pricing is set by the bond market. Scale is critical to create efficiency.