Business Loans

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Term Loans

At a Glance

Generally issued for periods of time in excess of one year, with a structured repayment schedule.

Best For

Long term financing, such as for:

	Business expansion
	Capital improvements
	Equipment purchases
	Refinancing existing debt
	Business acquisition

Features

Term loans can be structured in a number of ways, including both fixed and variable rates; monthly or quarterly payments; and with or without balloon payments.

Lines of Credit

At a Glance

A line of credit provides the customer with the ability to either pay down any outstanding loan balance or to draw against the unused portion of the line.

Best For

Line of Credit arrangements are best for satisfying temporary or short term financial needs, especially where the timing or extent of the financial need is currently unknown or changing. Some such needs or purposes include:

	Temporary increases of working capital
	Accounts receivable financing
	Construction & Land development
	Purchasing of inventory

Features

Lines of credit are generally issued for a period of one year or less, with either a variable or a fixed interest rate. However, longer term commitments are also available.

	Letters of Credit
At a Glance	Commercial and Stand-By Letters are issued by the bank for the purpose of guaranteeing payment or performance of the borrower.
Best For	Large purchases, where the seller insists upon a bank’s guarantee of payment or in lieu of a performance bond issued by an insurance company.
Features	Generally issued for a term of one year or less, with a fee based upon the face amount of the Letter of Credit. Interest accrues only upon an advance issued at the request of the beneficiary.