Are you considering applying for a loan at Investors Bank to overcome financial challenges in your small business?
Running a small business is not easy as it comes with numerous challenges ranging from paying all the bills to heavy competition — one of the biggest challenges in accessing capital, especially at times of distress.
Investors Bank offers small business loans for businesses that operate in a wide range of areas. Further, they provide easier applications and other processes which can be very useful for a busy business person like you.
Depending on the type of loan you receive, you can invest it in inventory, machinery or use it to expand your business. So, this article will walk you through all the available small business loans at Investors Bank. Plus, it will shed some light upon the interest rates, fees, and the process.
An Overview of Investors Bank's Loans
Investors Bank is a full-service bank that is publicly traded. It is based in Short Hills, New Jersey, USA. The bank currently operates across New Jersey and New York, with over 150 branches. Further, the bank has been in service for more than 90 years.
This bank has helped many small businesses by approving numerous loans. In addition to loans, they offer various services that can help your business thrive. Some of the benefits include treasury management, investments and planning, and industry solutions.
You can apply for loans from Investors Bank easily. All you have to do is reach their official website, find the small business webpage, and click on the application form link. Alternatively, you can contact your local bank branch for more information.
Types of Loans Offered by Investors Bank
It is crucial to pick the right type of loan since it can ensure you benefit in the long run. Further, depending on the type of loan, your business can thrive and beat the competition within a few years.
The bank employees will provide you with complete detail about the loans that can suit your business. However, it would be better if you knew the options before applying for any type of loan.
Investors Bank offers three different types of loans: Lines of Credit, Terms Loans, and Owner-Occupied Mortgages. You can take a look at a detailed explanation of these loans below:
Lines of Credit
Lines of Credit or LOC is an existing borrowing limit that you can tap into at any time. You can withdraw the money whenever you want it until the loan reaches its limit. You can repay the money to borrow money again.
Unlike other types of loans, LOC has built-in flexibility. You can negotiate the total credit limit, amount of interest, and the size of payments with the bank.
You can secure Lines of Credit by using collateral. However, sometimes you can receive unsecured LOCs at a higher interest rate. Further, LOC allows you to tailor your spending and help you manage your business better.
Some of the important features of LOC is listed below:
- You can access the credit line with designated checks
- Rates are variable
- Terms for LOC can go up to three years
- You can withdraw and pay money multiple times
Terms Loans by Investors bank will offer you a lump sum of money upfront for specific borrowing terms. Generally, term loans offer excellent financial support to established small businesses. As long as your business has a sound financial statement, getting this loan will be very easy.
You will have to agree to a certain repayment schedule. The interest rates can be fixed or floating depending on the terms and conditions you agree for. Further, this loan will require a considerable down payment if you want to reduce the total cost of the loan.
You can use this loan to buy new equipment or upgrade it, invest in machinery, inventory, or lease a new building. The application procedure for this type of loan is similar to that of applying for other credit facilities.
The Terms Loans come in further types. It is classified based on the lifespan of the loan. They include Short term loans, Intermediate Loans, and Long-term Loans.
Here are some key factors about Term Loans for Small businesses at Investors Bank:
- Competitive interest rates
- Payment deduction is fixed and detects automatically every month
- Terms are flexible up to ten years
An owner-occupied mortgage is where the borrower is expected to use the place for at least 12 months. This kind of loan comes with lower fees and penalties, unlike other loans. Further, with this type of financing, property tax and mortgage interests are deductible.
Investors bank can help you if you want to refinance your office or purchase it. It can be a working office space, a warehouse, or any kind of space you conduct your business in.
After completing a brief application form, your business may be eligible for this type of loan. Small businesses can qualify for a total credit of up to one million dollars with this loan.
Below are some vital factors about Owner-Occupied Mortgages:
- Automatic detection of payment every month
- Interest rates are lower
- Flexible terms
- Monthly payment is fixed
What Lending Criteria Does the Bank Have?
Like any other bank, Investors Bank also offers loans under specific terms and conditions. Most of the lending criteria are similar to that of other banks. Nonetheless, here are some pointers that highlight the lending criteria of this bank.
- The business size should fall under the SBA definition
- Your business should operate for profit
- Has equity to invest and used the available resources
- The business should operate in the USA or its possessions
- It should not be an academic school, pyramid sales organization, or non-profit organizations
- Your business should not involve in gambling activities such as casinos or race tracks
Investors Bank's Interest Rates, Fees, and Loan Options
Before you consider any type of loan, it is vital to know about the interest rate offers. This step will help you in planning your budget well, in addition to helping you make the right choice.
As with any other loan, the interest rates and fees depend on the loan's terms and sizes. Although you can negotiate with the bank to a certain extent, you can not go below their limits. So, here is a look at the interest rate at Investor's Bank for small business loans.
Lines of Credit Interest rates
Lines of Credit have higher interest rates owing to their different style of financing. Generally, LOC will have interest rates ranging anywhere between 5% to 6%. However, in some cases, it can go up to 7%.
Term Loans Interest rates
Interest rates for terms loan can vary widely depending on the terms and conditions. The longer the loan period, the higher the rate of interest you will have to pay. You can expect interest rates anywhere between 2% to 3% for a small business loan for ten years.
Owner-Occupied Mortgages Interest Rates
Interest rates for Owner-Occupied mortgages vary depending on the conditions. You can further opt for two types of loans, and they are fixed and adjustable loans.
The bank will use an amortization formula to make a payment schedule. It will include each payment into interest and principal. If you pay the amount as the amortization schedule, you can pay off the entire loan at the end of the term.
Investor's Bank Application
The application procedure for a business loan at Investor's bank is very easy. All you have to do is surf their website for the application or contact your local branch. Then, the bank employees will be ready to negotiate the terms and conditions with you.
Here is a list of things you will need to complete your application form:
- Property address and other personal information such as name, social security number, and contact details
- Ownership certificate
- Two most recent years Business federal tax returns
- Signed copies of two most recent Personal Federal Tax returns
- Business debt schedule
- Completed personal financial statement (available on the bank website along with the loan application form)
- Rent roll, copies of leases, and contract for commercial mortgage request
Additionally, you will have to provide current banking relationship details. It includes the current bank, type of account, and current balance in the accounts. If you have multiple accounts, you have to list them all.
When you hear from the bank after applying, you must contact them within 90 days. If you fail to do so, they will consider that you withdrew the application.
Summary of Investors Bank's Loan Options
If your business fits well the eligibility criteria, Investor's Bank can be an excellent choice. Moreover, they offer a very easy application process which can be very useful to businesses when they need money urgently.
You can pick any of the three loans mentioned in this article as long as you have the right credit score.
So, what can you do if you do not fit into all the standards or have a good credit history? The best option is to rely on online lenders who can offer loans at a faster pace.