Small Businesses run with a mix of hard work, innovative ideas, teamwork, and a lot of uncertainty. Yes, as the beginning of a business can be unpredictable, entrepreneurs face many challenges in having an adequate cash flow and making their businesses profitable. Are you an entrepreneur with similar challenges?
Small Business loans are a reliable resort for entrepreneurs like you. However, you may wonder, how beneficial can small business loans benefit you, considering the repayment terms and the management of liabilities?
Banks such as FirstBank have multiple loan options for small businesses. They come with flexibility, fixed-payment terms, and lending options for equipment financing and real estate financing.
Read on and learn more about the small business loans at FirstBank, as we have laid out detailed information for you in this article.
An Overview of FirstBank Holding Co Loans
Based in Colorado, FirstBank Holding Co is a privately based bank and financial services company. The bank is located in 115 locations across three states.
FirstBank assists businesses by understanding their operations and financial approaches. After thoroughly knowing you and your business goals, FirstBank offers financial solutions and guidance. You can get financial aid by discussing your business type, the purpose of the loan, business goals, and revenue with the bank officials.
Here are some of the loans offered by FirstBank Holding Co.
- Business Lines of Credit
- Owner Occupied Commercial Real Estate Financing
- Acquisition or Expansion Loans
- Equipment and Fleet Loans
- Small Business Administration Loans
- Business Credit Cards
- Healthcare Practice Loans
- Business Cash Reserves
- Business Letters of Credit
Types of Loans Offered by FirstBank Holding Co
You can find several loan options at FirstBank Holding Co. At FirstBank, small business loans are ideal for entrepreneurs as they are designed to meet the needs of the business.
Moreover, small business loans have flexible terms. Let's look at the loans offered by FirstBank Holding Co.
Line of Credit
Being an entrepreneur, the seasonal fluctuations and the pilling liabilities can be a constant worry for you. However, with the line of credit, you can ease your worry as they fund short-term or seasonal needs and payment of current liabilities.
Line of Credit at FirstBank Co comes with flexibility that you wouldn’t receive with any business loan. This loan option is flexible because it allows you to draw and repay the funds at your convenience. Therefore, your business will always have adequate cash flow.
FirstBank offers three options for the line of credit:
Working Capital Line of Credit
Understandably, you will want to attain the benefits of trade discounts, facilitate payrolls and additional expenses when collecting payment for completed work.
The working capital line of credit assists in efficiently managing the cash flow of your small business. How is it beneficial? It links the available amount for drawing with your accounts receivable and/or inventory.
As the monthly payment of the account is limited by accrued interest, you benefit from the flexibility to pay the principal.
Commercial Cash Reserve
A commercial cash reserve benefits all types of business, be it small or large. The bank will directly link your account to the commercial cash reserve. Thereby you can have quick access to funds as needed.
You can use the commercial cash reserve for specific purchases or as an overdraft protection line of credit. Thereby bridging the gaps in the cash flow.
Commercial FirstLine of Credit
Like commercial cash reserve, commercial FirstLine of credit allows your business to pay down the principal balance, with the monthly balance limited to the accrued interest.
The only exception Commercial FirstLine of credit has is that it is not linked to your checking account.
Equipment and Fleet Loan
A business essentially requires equipment, and an expansion is undeniably dependant on investment in equipment. You would have planned to invest in equipment for the smooth and efficient running of the business. Hence, you notice the problem arising in funding the equipment.
FirstBank has your back as it has a funding process quicker than you would expect. In addition, the value of the equipment determines the term and amount of your equipment loan. The advantage is there wouldn’t be any extra collateral needed on your part.
If you plan to invest in the following equipment, you would only qualify for the equipment and fleet loan.
- Specialty vehicles, trailers, trucks, buses, and vans
- Healthcare equipment
- Construction equipment
- Office equipment: large-scale printers, servers, software, etc.
Commercial Real Estate Loans
As your business needs a location, you would need a property. To finance or refinance your commercial or investment property, you can rely on commercial real estate loans offered by FirstBank.
You can avail of the commercial mortgage loan with a 20- or 25-year amortization with a 10-year maturity.
Therefore, you can finance your commercial property and be assured of running a profitable business.
Owner Occupied Commercial Real Estate Financing
You may wonder whether there are loan options for the property space occupied by your business more than or equal to 51%? Yes, for an entrepreneur like you owning a commercial property, there is a loan option called owner-occupied commercial real estate financing.
This type of loan comes with multiple benefits such as lower rates and fees and flexibility. Moreover, you gain opportunities for growth as the bank assists with working capital needs, seasonal variations, and expansion opportunities.
Small Business Administration Loans (SBA)
Small Business Administration Loans are designed for entrepreneurs as they preserve your cash while growing your business. For all the SBA loans, there is a streamlined procedure.
Here are the SBA loan options offered at FirstBank.
- 504 Loan Program
- SBA 7(a) Loan Program
504 Loan Program
As a small business owner, there are several reasons why you should choose the 504 loan program rather than a standard commercial real estate loan. FirstBank offers lower interest rates when financing a smaller percentage of the purchase price.
With FirstBank, you can have 90% loan-to-value funding for certain owner-occupied commercial mortgage loans.
You can use the 504-loan program for the following requirements in business.
- Purchase of a property
- Improving facilities or property, such as including utilities, parking lots, and landscaping.
- Construction of a property
- Renovation of a property
- Purchase of long-term machinery and equipment
You cannot take the 504-loan program for the following.
- working capital or inventory
- consolidating debt
- investment in rental real estate
SBA 7(a) Loan Program
One of the most common small business loan programs is the SBA 7(a) Loan Program. The reason why entrepreneurs most prefer it is that it offers a myriad of business solutions.
You can take the SBA 7(a) Loan Program for the following.
- Inventory purchase
- Purchasing new furniture, machinery, and equipment
- Acquiring a company
- Refinancing of existing debts
- Working capital lines of credit
With a term loan, you can have predictable monthly payments because the interest rates are flexible. Most entrepreneurs take the Term loan for business acquisition or expansion.
What Lending Criteria Does the Bank Have?
To attain business loans at FirstBank Holding Co, you will require to show the following documents to the banks.
- Personal and business financial statements
- Cash Flow Statement
- Tax Returns
- Business Credit Score
- Personal Credit Score
- Outstanding Debts
For more insights on the lending criteria, you should contact FirstBank Holding Co, as different loans have different requirements. Chances are, you could have flexible lending criteria for a certain type of loan.
FirstBank Holding Co Interest Rates, Fees, and Loan Options
For small business loans, the fees are as follows:
If you take a loan of $150,000 or less, the financial corporation will charge you from 2% of the guaranteed loan amount.
If the guaranteed amount is over $1 million, the fees would be 3.75%.
The current prime rate is 3.25%. Moreover, this prime rate depends on the market rate that fluctuates based on the performance of the U.S economy. The interest rates of banks such as FirstBank Holding Co are dependent on the current U.S. prime rate. Hence, with the changing prime rate, the interest rates change too.
FirstBank Holding Co Application
To understand the loan application procedure, you should get in touch with the bank officials of FirstBank Holding Co. Alternatively, you can fill up the online business lending contact form, and a bank official will contact you to assist you further.
In the online business lending contact form, the information required will be:
- Phone number
- Zip Code
- Name of your business
- Description of your business
- How long your business has been in existence
- Estimated annual revenue of your business
- How will you be using the funds
- Business Website
Summary of FirstBank Holding Co Loan Options
As you may know, a lot of uncertainty revolves around running a small business. In case of an emergency, it can be extremely difficult to generate immediate cash. In such cases, certain cash advances and services act as a boon. These organizations have quick approvals and prompt delivery of money. Moreover, despite having poor credit, you can avail cash. Therefore, in times of need, you can rely on such financing groups.
At FirstBank Holding Co, you can boost your business with small business loans. You need not worry about the interest rates and fees because FirstBank has designed them for entrepreneurs to encourage them and help them grow their small businesses.