At First Independent Bank, we are committed to helping business owners succeed. Whether just starting out or expanding their operation to something beyond what they once thought they’d ever be able to accomplish, our lending experts and unique commercial loan options put business owners at a distinct advantage.
As you determine what course you’ll take regarding a commercial loan or small business financing decision, there are a few things to consider and some questions you can ask.
Don’t assume you know what you should do. Further, don’t rely completely on a loan officer or financing specialist. Use their expertise, but make sure that you know which questions to ask and which factors to consider. Do enough homework for your business so that you can enter into a conversation about a small business loan informed and ready. Many times, people act on the advice of loan offers without enough understanding of the options available to them. It can lead to impulsive actions that have long-term headaches.
An uninformed decision can be a fatal one for your business.
Depending the amount of your loan and the repayment terms, your interest rate can significantly impact your bottom line. A couple of percentage points for a smaller loan and a shorter repayment period is not a significant issue. Bigger loans with longer repayment periods, however, can mean the difference between a wise move and a foolish one for your business.
Some banks, and some loan types, require the applicant to pay fees to submit the loan application. Application and processing fees can vary from $0-$500 and are often determined by the lending institution. If the loan you’re considering comes with an application fee, that shouldn’t necessarily be a deal-breaker. It just depends upon the amount and the other terms and conditions of the loan.
Selecting a financing solution for your business, whether to establish or to expand your operation, is often a source of stress. When the decision is made hastily, it can have unexpected consequences that negatively impact your business’s potential . It’s essential that you take as much time as you need to make the right decision. By understanding what the right next steps are for your business, you can make moves with precision and care.
Your business financial decisions are vitally important to your long-term success as a business-owner and entrepreneur. Be sure you know what questions to ask, what choices to make, and what direction to go. And then be sure you’re partnered with a bank and a lending expert who won’t steer you wrong.
