Arvest Bank is a regional bank that provides you with reasonable rates of interest and fees for different kinds of accounts of the customers. It served in the branches of Arkansas, Kansas, Oklahoma, and Missouri.
The bank offers space for different accounts with them, such as savings, certificates of deposit, market accounts, checking accounts, etc. It also has a mobile banking app that makes your overall banking experience much easier and smooth.
Arvest Bank is all about its commitment to its founders and its dedication to customers. Let's find out about the different types of loans they offer in small business administration.
An Overview of Arvest Bank's Loans
Arvest Bank offers reasonable interest rates and fees on market accounts, savings accounts, certificates of deposits, checking accounts, etc. It has branches across Missouri, Oklahoma, Kansas, and Arkansas. The bank understands your banking requirements and helps you borrow for small businesses.
The bank offers different sizes of loans and a variety of financing options. Some of the primary financing options dealt with by Arvest bank are listed below.
- SBA loans
- Business credit lines
- Commercial real estate loans
- Equipment financing
- Agricultural loans
Additionally, Arvest Bank has a customer-friendly service. Flexible relationship managers support all its business loans and lines of credit.
Types of Loans Offered by Arvest Bank
Arvest Bank offers various types of loans in all its branches. It has the highest level of autonomy of the US Small Business Administration loans. It affords to pay as lenders since it fulfills the criteria of small business loans under the SBA guidelines.
This way, the bank can streamline essential processes for providing financial assistance to those who wish to start a small business community and business in the market.
Additionally, Arvest Bank holds a record with the SBA and demonstrated proficiency in processing and servicing SBA-guaranteed loans. That is why they received the Preferred Lender Program as well. Due to the Preferred Lender Program that the bank is a part of, it can offer various small business financing options.
7(a) Loan Program
Arvest Bank offers 7(a) loans to eligible customers that need finance options to start their business. Their business plans may be of starting, acquiring, or expanding an established business. It is the most basic of small business loans under the SBA. Borrowers are required to apply for it by a participating lender institution.
504 Loan Program
The 504-loan program under the SBA program is that type of loan offered to loan-term businesses with fixed-rate financing for major fixed assets. For example, buildings and lands. It is most commonly applied for small businesses to be established for a longer period in the market. Therefore, it is a relatively bigger investment.
SBA Express is that type of funding or financing option used for mostly all types of business purposes, such as working capital lines of credit. This type of financing option is followed by a simple process that involves minimal paperwork for applying.
What Lending Criteria Does the Bank Have?
Borrowing money is an essential and valuable step for any business. Every bank has some banking guidelines and lending criteria that need to be met to be eligible for applying for loans under their authority. The guidelines serve as tools of evaluation of your business in its passage towards success.
These criteria are almost the same for all banks. However, let's take a close look at and discuss the lending criteria of Arvest Bank in detail. Meeting with the guidelines help you get properly prepared for strengthening your business and case of borrowing.
Reasons for Borrowing
Every potential and the licensed lender would require the purpose of the loan before approving it or even signing you as eligible for it. For instance, personal borrowing requires the potential leaders to check on the funds if they're used to produce the last value in their business.
A small business loan is required to meet the business needs of a signed contract with a major client. It is more attractive to the lender when the borrowers meet such criteria than proceeding with an ongoing operating payroll due to slow business.
Borrowers should build a strong case of utilizing the borrowed funds to enhance short-term or long-term business results.
Borrowing From the Right Source
It is quite common to initially fund your business with your pocket money or a credit card when you just start with a small business. Arvest is applicable to offer you personal and business credit cards along with its comprehensive Rewards Program to your best interest.
The bank allows you to connect with lenders of various requirements that lend you loads of different shapes and sizes. Suppose you are tied with the bank with previous relations. In that case, Arvest makes a good effort to learn from you, your business, industry, and your customers to offer you better deals on small business loans and help you make better lending decisions.
If you intend to use these funds to invest in any business equipment, you can discuss equipment leasing options with the Equipment Financing specialists of Arvest Bank.
Type of Loan Sought
You need to be crucial about the type of loan you adhere to and match it with your ongoing cash flow. The bank evaluates the same before offering an SBA loan to you. You need to pay collateral to back the purpose of the loan. For instance, if you apply for a loan to fund your machinery, then you may have to offer a security lien on it as collateral.
Small business loans depend on the size of your business, given the purpose of such SBA loans. The SBA encourages small businesses to borrow depending on guaranteed loans meant for businesses of certain sizes and purposes.
You can consult an SBA loan lending institution about the same. It may be a lengthy process involving lots of paperwork. However, it is a valid option to consider. Arvest is included in the SBA Preferred Lender Program, expediting the loan application process.
Every processing of a loan requires you to fulfill their corporate and personal financial information fields. Additionally, you would have to fulfill their documentation requirements. Typically, banks ask for the following documentation to process a small business loan.
- Business tax returns for the previous two years.
- Potential personal tax returns for the previous two years.
- Financial statements related to the business for the past couple of years and the updated statement.
- Income statements and balance sheets.
- A history of cash flow statements and current year projections.
- Copies of significant clients and vendors.
- Additional information about patents, key proprietary information, etc.
A borrower's business plan plays a critical role in deciding the loan amount and a major role in evaluating the borrower's loan request. A business plan should include certain factors to be eligible for an SBA loan.
- Key Personnel
- Development Plans
- Competitive Analysis
- Marketing Strategies
- Business Description
- Financial Information
- Other important information
Be mindful of the information that needs to be updated and is expressive of all the details required to understand your business requirements. It allows the lender to make an informed lending decision.
The lender would want to learn your plans to run your business, and therefore, they'll run an evaluation upon which you need to stand firm and tall. It would require information based on certain queries.
- Your credit policy and enforcement
- The accounting system routing for your conditions and business results
- Your accounts payable policy and favorable terms with key vendors
- The current statistic with payables
- Status of advantages on discounts for prompt payment
- Any insurance coverage
- Adequate insurance for liability and property damages
Taxes are an important evaluation criteria for lenders to check your eligibility for a loan with them. They require certain information regarding the same.
- Status of your payroll, property, and income tax.
- The support of tax professionals to ensure the best benefits of taxation, if any
Arvest Bank's Interest Rates, Fees, and Loan Options
Every bank follows the interest rates, fees, and lending terms as per the SBA guidelines issued by the State. However, they may differ among the different types of SBA loans.
7(a) Loan Interest Rates
The lender and the borrowers are on terms to negotiate the interest rate for a 7(a) loan for a small business purpose. However, the SBA guidelines set a maximum interest rate so lenders cannot charge any borrower more than the fixed interest rate.
- The SBA 7(a) loan rate depends on the ongoing U.S. prime rate.
- The prime rate depends on the market rate of the U.S. economy.
- Banks use the prime rate to set a limit on the interest rates.
- The current prime rate is 3.25%, ranging from 6-8% of the maximum SBA loan rates.
- You may be rated with a small interest rate given an excellent history of credit score.
- Your SBA lender cannot charge you more than 8% of the interest rate.
- Fixed rates of interest stay the same for the entire term of the loan.
- Large businesses generally go for fixed rates of interest.
- Variable rates of interest may fluctuate according to the performance of the U.S. economy.
- Loans under $50,000 are typically charged variable rates of interest.
7(a) Loan Fees
Fees on certain loans increase your loan's total annual cost or the annual percentage rate (APR). SBA loans have a guaranteed fee base on loan terms and amounts. The lender pays the initial guarantee fees and pushes the rest onto the borrower.
- Amounts of $150,000 or less account for fees ranging from 2% of the guaranteed amount.
- 3.75% is charged on the amount over $1 million.
- For loan terms below 12 months, you can expect lower guarantee fees.
- Additional fees are applicable, such as application fee, credit check fee, appraisal fee, packaging fee, and closing fee.
- Make sure to take all types of fees into account to calculate your total cost of the 7(a) loan.
The loan terms of SBA loans are determined by the lender based on your ability to repay, the loan purpose, and the life of the assets you're financing. However, the maximum loan terms are defined.
- 25 years for real estate
- 10 years for equipment
- 7 years for working capital
Additionally, you may be charged with a prepayment penalty for 15 years or more loan terms if you prepay in the first three years of the term.
504 Loan Rates
The 504 loan rates are subject to the SBA rules. Based on those grounds, the 504 loans are based on the current five-year and 10-year U.S. Treasury bonds rate. The rates of the current SBA 504 loans are as follows.
- 10-Year SBA Loan Term: five-year Treasury rate + 2.23%
- 20-Year and 25-Year SBA Loan Term: 10-year Treasury rate + 2.36% and 2.39%, respectively
504 Loan Fees
The SBA 504 loans are eligible for charging fees as well. The main fees to look out for 504 SBA loans are as follows.
- Annual SBA fixed service fee – 0.3205%
- CDC servicing fee – 0.625%
- Central servicing agent fee – Cannot exceed 0.1 %
- Third-party lender participation fee – 0.5% one-time
- Guarantee fee – 0.5%
Additional closing costs and fees are also available.
SBA Express Loans Rates
Smaller subprograms of SBA loans overarch the 7(a) loans. One such small subprogram is the SBA express loan. These are loans that can amount to up to $350,000. Their applications are faster and expedited and have a defined approval procedure.
The SBA Express Loan interest rates are comparatively higher than those of the 7(a) loans. The rates range from 4.5% to 6.5%.
Arvest Bank's Application
The application qualification to apply for a small business loan at Arvest Bank requires you to have a maximum loan request of $100,000. They'd require certain documentation and information about you and your business plans and strategies, along with some paperwork.
Fulfilling these simple criteria, you'll be able to apply for a small business loan with Arvest Bank. The site has all the information regarding various documentations to be submitted and the fields to be necessarily filled.
Summary of Arvest Bank's Loan Options
Arvest Bank has a total of 275 branches in the country. Out of them, the majority are located in Arkansas. The bank makes efforts to find feasible solutions for those who want to start or establish a current small business.
It has professionals trained to assist the customers in their plans to start with a business. Through thorough discussions and processes, Arvest Bank moves ahead with your loan application.
Check out other reviews and lending options to have a clearer insight and better choose the deals for SBA loans.