We provide business solutions built on relationships.
We feel it's important for us to get to know your unique business, so that we can become your financial partner in helping your business grow.
Commercial Loans & Lines of Credit
Whether you're just establishing your business, expanding your operation or looking for solutions to keep up with supply and demand - we've got excellent financial resources to take your business further.
Funds To Build Your Business
Building a business costs money, usually more than you can generate from your operating revenues alone. Securing the funds you need will require careful planning and preparation.
Whether you're a fully operating business looking to add a new truck to your fleet or to build a new location, or if you're just starting out, you'll need money to turn your plans into reality. It might help to work with an accountant to calculate estimated costs for reaching the next level of development.
The Basics
Before you borrow, list your basic business expenses. Each time you expand your business, these costs are likely to increase.
- Employee salaries
- Rent
- Electricity, heating, air conditioning and fuel
- Paper and other supplies
- Purchasing or leasing operating equipment
- Decorating or remodeling costs
- Legal and professional fees
- Insurance
- Taxes
- Machinery and power tools
Give Yourself Some Credit
One option to increase your funds is to get a line of credit, which is a type of loan that gives you short-term or seasonal funds.
Basically, a line of credit is very similar to a credit card, with the notable exception that interest on a line of credit is lower and may be tax deductible. You borrow cash, using your business assets as collateral, and pay back the principal and interest on any outstanding balance each month.
A long-term credit loan usually lasts up to five years, and is helpful if you want to have money for operating costs until your business turns a profit. Lenders typically require that you provide collateral or sign a promissory note on this type of loan and pay it back in installments. Of course, you should always be wary of getting into unnecessary debt or borrowing more than you can afford to pay back.
Do You Qualify?
If you're thinking about taking a loan to build your business, there are several qualifications that banks and investors normally expect from you, as the owner, and your business. Before you apply for a loan, make sure that you can provide potential lenders with the following:
- Business plan
- Balance sheet and income statement
- Cash flow projections
- Profit and loss reports
- Personal financial statements for all business partners
- Credit report
- Personal income tax returns
- Information on business debts
What is a Business Line of Credit and how is it used?
A Business Line of Credit provides a business with access to money that can be used for various expenses to assist in the operation of your business.
How It Works
This revolving line works similar to a credit card, in which interest begins to accumulate when funds are drawn. As the balance is paid, it is again available to be borrowed.
Most businesses use their business line of credit for short-term operational expenses like ordering supplies, increasing inventory or payroll.
Maintaining good standing on your line of credit may build your business credit rating and better position your business for future financing.
Is it a good idea to get a business line?
Business owners are facing unprecedented times brought on by the coronavirus pandemic, making businesses ask themselves if getting a business line of credit is a good idea.
Short-Term Expenses
A business line of credit is meant for short-term business expenses that you will repay within months or a few years. Since most credit lines have a variable interest rate, keep in mind that if you miss a payment your interest rate could rise.
The Best Fit For Your Business
When deciding if a business line of credit is right for you, work directly with a business lender. Together you can select the option that fits best for your unique business needs. Most lenders will review your:
- Ability to repay
- Credit history
- Earnings and savings
- Collateral
- Purpose of the loan
Ag Lending & Lines of Credit
With many of our locations being in the heart of farming communities, Ag lending is very important to us.
Young Farmers - Where to Begin
Whether you're taking over the family farm or purchasing land to start your own farming operation, thinking about financing can become overwhelming.
Choosing a Lender
Often times when searching for an Ag Lender it's nice to keep rates in mind, but to also find a lending partner that cares about the growth and success of your farm, and that can offer some sound advice along the way.
There are USDA programs and agriculture grants available to farmers that can get you off to a great start as well. Getting involved with the National Young Farmers Coalition can help you stay informed about the alternative funding that may be available to you.
Developing a Farm Business Plan
Just like any other business, a farmer should develop a business plan as well. Your farm business plan should include your business goals, why you think you can achieve them, and a laid out plan for doing so. Think of your business plan as a work in progress, not an end product. You'll want to revisit your plan regularly as your farm grows.
Many business plans will also include an enterprise budget in which you'll project costs and returns for your farm production practice. Creating this budget will help you develop a viable farm business plan. There are many calculator tools available online to help you develop a budget for your particular farming operation.
Equipment Loans
Regardless of your business size, we have financing options available to help you with your equipment needs, to ensure your business is running efficiently.
Equipment Leasing vs. Buying
Leasing equipment can be a great option for businesses that don't have access to unlimited capital or businesses needing equipment that will need to be updated on a regular basis. Purchasing equipment is likely better for established businesses that need equipment for a long-term period. Every business is different, so it's always important to weigh the pros and cons before making your decision.
Leasing Pros:
- Less initial expense.
- Easier to upgrade, especially if technology is a factor.
Leasing Cons:
- Higher overall cost.
- Required to pay for the entire lease period whether you use the equipment or not.
Buying Pros:
- Gain ownership, thus increasing assets that can be used as collateral for other financing.
- Tax incentives, consult your tax professional regarding depreciation deductions.
Buying Cons:
- Higher initial expense could require a down payment of about 20%.
Check out this Asset Depreciation Calculator.
The Best Time to Purchase Equipment
Whenever you're thinking of purchasing new equipment, you should first talk with your tax professional. Also, reevaluate your business plan, your business plan should always be a work in progress. When making big purchases, you need to determine what assets and equipment are absolutely essential to running your business efficiently and effectively.
- How will this purchase add value to your business in the long term?
- Will it improve productivity and lead to increase profits?
- Does current equipment need upgraded in order for you to stay competitive in your market?
Once you determine what equipment is needed, it's time to do your research. There's nothing wrong with comparison shopping to find equipment that will best serve your needs.
Deciding on a time to purchase equipment will likely vary depending on the type of business. If you're operating a seasonal business, you'll likely find cost savings by purchasing your equipment in the off season. Consider searching locally at liquidation sales, estate sales and auctions which may turn up some gently used equipment at a better cost.
*All lending products are subject to credit application and approval.
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