First Horizontal National Corporation Small Business Loans

First Horizontal National corporation is a bank holding company that is headquartered in Memphis, Tennessee. This bank is more commonly known as 'First Horizon,' is the largest bank in Tennessee and the 4th largest in the Southeast region of the country.

First Horizontal National Corporation offers various small business loans such as SBA loans (SBA (7a), SBA 504, SBA Express Loan), and below, we have discussed them in detail.

Types of Loans offered by First Horizontal National Corporation Bank

5. SBA (7a)

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6. SBA 504

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7. SBA Express Loan Line of Credit

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Types of Loans offered by First Horizontal National Corporation

1. SBA (7a)

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2. SBA 504

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3. SBA Express Loan Line of Credit

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4. Business Lines of Credit

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5. Bizessentials Term Loan

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6. Bizzessentials Term Real Estate Loan

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First Horizontal National Corporation Interests, Fees, and Loan Options

6. SBA (7A)

7. SBA/CDC 504 Loan Program

8. SBA Express Loan Line of Credit

9. Business Lines of Credit

10.Bizzessential Term Loan

11.Bizzessential Term Real Estate Loan

What Lending Criteria does First Horizontal National Corporation 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 flowing 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.

However, for SBA loans, an additional criterion needs to be followed:

Comerica 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.

For more information, please log onto the website of First Horizontal National Corporation. Click here.

Requirements for SBA (7a)

Requirements for SBA (504)

Summary of First Horizontal National Corporation Loan Options

First Horizon National Corporation offers a wide variety of loans and three types of SBA loans. Below is a shortlist of all the business loans offered by First Horizon:

We have also discussed all the necessary information regarding interest rates, fees, and terms. However, it is important to study all the details thoroughly, assess your needs, or hire an expert to do so. Before applying for a loan, discuss with the bank. Also, make sure that you have the appropriate collateral, such as real estate, business assets, equipment, and inventory.

For more information regarding loans, learn more.