East West Bank Small Business Loans

East West Bank is and is owned by the East West Bancorp, the bank has its headquarters in Southern California. East West Bank was founded in Los Angeles in 1973 to provide services to the Chinese-American population.

East West Bank also offers small business loans, especially SBA-backed loans. We have discussed those loans below.

East West Bank is an SBA NPL (National Preferred Lender) and can provide a faster turnaround. East West Bank also offers flexible payments and favorable loan terms.

3. SBA (7A)

The SBA (7a) loan program is the most common time of SBA loan, and only small businesses are eligible for this loan.

4. SBA/CDC 504 Loan Program

CDC (certified development company) and SBA provide the 504 loan program that can be used to finance fixed assets of a small business such as buildings and other properties.

Types of Loans offered by East West Bank

1. SBA (7A)

2. SBA/CDC 504 Loan Program

3. Commercial Real Estate

4. Equipment Financing and Leasing

5. Trade Finance Lines of Credit

It takes time to convert purchases into cash, which is why importers need cash fluently so that their businesses run without disruptions. East West Bank lines of credit provide access to funds to help the business maintain a healthy cash flow.

East West Bank Interests, Fees, and Loan Options

1. SBA (7A)

2. SBA/CDC 504 Loan Program

3. Equipment Financing and Leasing

4. Commercial Real Estate

5. Trade Finance Lines of Credit

Interest Rate: 8.5-80 % (Medium-term loans), 7-30 % (Online term loans) 7-99 % (Merchant cash advances)

Fees: None

What Lending Criteria does East West Bank Have?

Below is the basic lending criteria that all the banks follow:

Credit Score

Credit is the most important component of all types of businesses, whether they are small or large. Lenders will always analyze the business's credit score and then decide whether it can pay the loan or not. Therefore, the best way to maintain a healthy credit score is to pay your dues on time.

Credit scores can also be easily obtained from several agencies such as Equifax, Dun & Bradstreet, and Experian. Another way of maintaining a positive credit score is to have a low debt-to-income ratio. Lenders will not invest in businesses that don't have a good credit score.

Annual Revenue

Another important factor that the lenders will review is the annual revenue of the business. Most lenders will only lend to those businesses that have been profitable for the last two years or more. Businesses need to make sure that all the financial statements are accurate and up to date.

Lenders will also look at specific details such as the current account (current assets divided by liabilities) and ask for copies of bank statements and transactions. However, businesses will only be eligible for a loan if their cash flow is growing.

Business Plan

A minority of lenders might not ask for a business plan, but most of them do, and businesses need to come with a clear and concise proposal. Usually, lenders require the business plan to know the purpose of the loan and discuss the business's stability.

One of the main components of business plans is the resumes of managers and staff. However, despite having a clear business proposal, the lenders will still ask for proof of the staff's ability and relevant credentials and experience.

Collateral

Collateral is an essential requirement, and most lenders will not provide a business loan if it cannot give collateral. Collateral can be anything like equipment or property. The collateral will also decrease the risk for the lender as it will have an asset in hand, so if the company fails to pay the loan, the collateral can be paid to fund the damages.

The owner of the company needs to provide a personal guarantee and will also need to submit some essential documents:

Time in Business

Most banks are hesitant to lend loans to new companies that have been active for just a few months. Lenders cannot trust small businesses or startups that have just entered the market because they don't have a proper credit score and the cash flow is usually unstable. Banks will most likely lend to businesses that have been active for more than two years.

SBA 7 (a) Eligibility

SBA 504 Eligibility

East West Bank Application

Following is the application procedure of all the banks that borrowers have to follow:

Before you apply for a loan, ensure that all your documentation is up to date. Also, organize all the documents properly, and if some essential documents are missing, contact the relevant authorities. Collect all the financial information about your business and pay all the dues as soon as possible.

Requirements for SBA (7a)

Requirements for SBA (504)

For more information, check out the website of East West Bank.

Summary of East West Bank Loan Options

East West Bank offers several types of loans that are designed to help small businesses. The interest rates and payments of the loan vary, so does the criteria. Study all the necessary details, review the requirements and then choose a loan. For more information, check out the SBA website. Below is a list of the loans East West Bank offers.

1. SBA 7(a) Loan

2. SBA 504 Loan

3. Equipment Financing and Leasing

4. Commercial Real Estate

5. Trade Finance Lines of Credit

For more information regarding loans, learn more.