Posted
on Thursday, November 7, 2024
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SBA Loans
Seven Commonly Asked Questions About Small Business Loans
“When it comes to getting a small business loan, First National Bank wants a business owner to ask all the questions that are on their mind. It helps our lenders get to know you and your business better, and it gives us the opportunity to share our expertise in matching your business with the best loan solution,” said Sr. Vice President and Business Development Officer Tim Fitzgibbon.
Here are answers to seven of the most commonly asked questions our lenders receive from business owners.
What type of collateral might be needed for a business loan?
When applying for a business loan, you will typically need to offer collateral to secure the loan. Common types of collateral include real estate, equipment, inventory, and accounts receivable.
What is a business line of credit?
A business line of credit is a predetermined amount of money a business has access to when needed. It is not a loan until funds are drawn down from your loan account, and interest is paid only on the amount borrowed. A line of credit offers great flexibility for a business to borrow exactly what is needed, when it is needed.
What types of business loans are available?
There are several types of loan solutions offered through First National Bank, including commercial construction loans, commercial real estate loans, business lines of credit, business equipment loans, business vehicle loans, Small Business Administration loans, and equipment lease financing.
What is needed to qualify for a small business loan?
First National Bank’s lenders will take a holistic view of your business situation, including your length in business, credit history, business plan, tax returns, financial statements, balance sheets and cash flow, and any personal guarantees. It is essential to provide detailed financial projections and demonstrate market potential. The SBA loan program has specific documentation requirements that our lenders can explain to help you prepare to apply.
What is the difference between an online and a local lender?
Choosing a local lender can make a world of difference. Local lenders like First National Bank not only offer personalized service tailored to your unique needs, but they also possess a deep understanding of the local market. Our lenders can guide you through specific challenges and opportunities that online lenders might overlook. Additionally, you will often find more flexible loan options and faster approvals. Building strong relationships is another significant advantage of working with a local lender. When you choose First National Bank, you are not just a number in a vast online system, you are a valued member of the community. Our lenders are genuinely invested in your success because your growth contributes to the local economy.
How quickly can I get a business loan?
The time it takes to process a business loan can vary widely depending on factors such as the type of loan, documentation requirements, completeness of your application, and amount and complexity of the loan. For instance, if you are getting a business line of credit from First National Bank, it will be more timely than if you are seeking a complex commercial real estate loan. Some loans can take a few days, while others several weeks.
How do I start the business loan process?
First National Bank’s lenders are easy to access and are ready to assist you. Call 515-232-5561 and ask to speak to a commercial lender or stop by any one of our bank locations. The best way to start the process is to be prepared to share your business story. Bring your business plan or well-thought-out explanation of your business objectives and goals, as well as your strategy for achieving growth and success. It is also helpful to present the lender with an estimate of the amount of money you might need and purpose of the loan. Don’t worry about bringing all of your business and financial documents to the first meeting. Your lender will explain what documents will be needed for your loan.
- commercial loan
- small business administration (sba) loan