Whether you’re looking to start your own small business, develop a parcel of land or increase your business’ cash flow, applying for a commercial loan can come with many questions.
To help you figure out whether a commercial loan is right for you, the team at Chesapeake Bank created a list of FAQs about business lending. We hope this list helps answer your questions and provides clarity into commercial lending.
Who is the best candidate for a commercial loan?
Anyone who needs to borrow money for business use is a potential candidate for a commercial loan. Commercial lending can also be used to start a line of credit for your business or simply transition your existing commercial banking relationship to an experienced local lender focused on your business’ bottom line.
What are commercial loans typically used for?
There are a variety of uses for a commercial loan, including, but not limited to: purchasing land, purchasing a building, new construction, renovation costs, working capital loans, working capital lines of credit, acquiring fleet vehicles, asset purchases, business expansion, business acquisition, even buying out a business partner.
What are the requirements to qualify for a commercial loan?
As with any loan, there are specific requirements that vary based on the type of loan and what the funds will be used for. For most commercial loans, approval is dependent on good credit, collateral amount, positive cash flow to support loan repayments and proven experience in the line of business the applicant is pursuing.
Who is responsible for loan repayment?
The business and its owners are all jointly responsible for the payment of a commercial loan.
How long is a commercial loan?
The life of a commercial loan can greatly vary, ranging from 90 days to up to 20 years. Depending on whether you’re seeking a loan or a line of credit, the business repays the loan over a set period of time, or sometimes, all at once.
What types of commercial loans does Chesapeake Bank offer?
Chesapeake Bank’s commercial loans and lines make it easy to manage your cash flow, profits, and growth. We offer nearly every type of commercial loan available, with the exclusion of hard money loans, including:
- Business term loans
- Lines of credit
- Vehicle financing
- Commercial mortgages and refinances
Ready to get started?
Contact Chesapeake Bank and ask to be referred to one of your local commercial loan officers to get started. During your initial meeting, your loan officer will assess your goals and help you choose the option that best fits your borrowing needs. We pride ourselves in helping business owners get the right loan by providing quick, local decisions, competitive rates, and personalized terms.