Small Business Administration loans form the backbone of small groups of businesses who plan to start up or expand their established business. Are you one of them? Well, if so, you are at the right place for solutions.
Sterling Bancorp Small Business Loans are just another banking solution to solve your small business loan issues. You can simply rely on Sterling Bancorp for your business requirements strengthening your finances in one place. But there is a lot more to know about the same.
An Overview of Sterling Bancorp's Loans
Sterling Bancorp has more to it than any other bank. If you have invested your trust in this bank for your small business loans, you can expect flexible terms and excellent customer service.
The Sterling Bancorp advantage is solutions and services at your fingertips when establishing a small business.
The bank allows you to have personal, commercial, and business solutions with a single contact with the Relationship Manager. They take care of everything you require for your business. With their unique banking solutions, you can expect to fulfill all your requirements.
From checking to financing, Sterling Bancorp's online tools, and conveniences, you get to enjoy the benefit of technology and its features.
Types of Loans Offered by Sterling Bancorp
Sterling Bancorp deals with various features and services and has a lot to offer for loans. Small Business Administration loans are easy to apply for when you fulfill the requirements to qualify. However, before jumping into qualifications, it's better to learn the types of loans the bank has to offer.
This type of loan is intended to fund your business purposes. From fixed loan terms to convenient lines of credit, the bank's Business Lending solutions are meant for your business requirements.
- These loans fund your business equipment.
- They help you start with your business.
- Business lending solutions offer personalized services in your best interest.
Business Term Loans
This type of loan helps fund your fixed assets and equipment. These form your working capital and finance acquisitions and expansions. It guides you just the way you need it.
- Sterling's Relationship Manager behaves like the single point of contact for all queries and solutions.
- Sterling finances your fixed assets and equipment.
- It provides easy access to resources and in-house expertise to help your business start.
Business Line of Credit
The business lines of credit at Sterling Bancorp enables seamless cash flow. This feature was enabled by keeping in mind the needs of the small businesses. The versatility of these loans offers the freedom to borrow according to your needs. Moreover, you can pay the interest for the amount you use.
- The Relationship Manager monitors the cash flow and transactions.
- You can borrow as per your requirements.
- The interest to be paid depends on the amount that you have used from the loan.
The business overdraft offer by Sterling Bancorp has more than just loaned amounts of money. This line of credit enables automatic funds up to your credit limit once you have overdrawn your linked account.
- The Sterling Bank Overdraft advances the funds to your current credit limit.
- These amounts range between $5,000 and $25,000.
- It is automatically accessed once you have overdrawn your linked bank account.
What Lending Criteria Does the Bank Have?
The lending criteria of Sterling Bancorp are the same as other banks. You need to qualify to certain bank requirements, and you will be eligible for their loans.
Build Personal and Business Scores
Personal credit scores are as important as business credit scores, even for small business loan applications. Personal credit scores depict personal debts, like credit cards or car loans. The bank requires this score to learn your management capacity to repay the loan.
Know the Minimum Criteria of the Bank
Be mindful of the qualifications and the requirements of the bank. It may differ from bank to bank. Sterling Bancorp asks for your financial records, credit scores, and details, such as identity proof, address proof, annual revenue, etc. Although the bank is flexible, it is better to cater to all these requirements to avoid potential issues.
Collect Financial and Legal Documents
Every bank records your details and finances before entering into a short or long-term relationship with you via small-business loans. Here is the list of documents they generally ask for.
- Commercial leases
- Business license
- Personal and business tax returns
- Articles of incorporation
- Balance sheet and income statement
- An ID proof
- Experience in business management
- Financial projections
Have a Strong Business Strategy
Before lending money, all lenders require a rough idea of your plans to utilize the loaned money. In the case of Sterling Bancorp, they need a solid business plan to learn your requirements and help you increase your profits. As such, a business plan includes certain components.
- The company, product, and service description
- Management team
- Facilities and operational plans
- Industry analysis
- Promotional, marketing, and sales strategy
- Projected finances
- SWOT analysis
Like any other bank, Sterling Bancorp also requires collateral to be prepared in case of extreme situations. Collaterals are assets like real estate, equipment, or inventory. These assets can be seized or done whatever if you fail to repay the loans. It is an assurance for lenders to recover the money if your business goes down.
Sterling Bancorp's Interest Rates, Fees, and Loan Options
The interest rates, fees, and the different loan options vary from bank to bank.
Small business administration loans have maximum interest rates beyond which lenders cannot charge their borrowers. These interest rates depend on the U.S. prime rate. This prime rate fluctuates according to the big U.S. economy.
The banks use the prime rate as the demarcation of rates and commercial loans. This prime rate is set at 3.25%.
- The maximum SBA loan rate varies from 6% to 8%.
- Excellent credit score records might lower the interest rates if you're lucky enough.
- The banks cannot charge you beyond 8% of the interest rate on SBA loans you borrow from them.
- The interest rates can be either fixed or variable.
- Fixed rates of interest mean the same amounts of monthly payments to be made throughout the loan term.
- Variable interest rates can either go high or low, according to the U.S. economy.
- A variable interest is influenced by the prime rate of interest of the bank.
- Usually, loans below $50,000 are charged variable rates of interest.
Fees or additional costs incurred beyond loans increase the total annual cost or the annual percentage rate. Nevertheless, be mindful that the guarantee fee is based on the loan term and the amount you've borrowed. The fee originates from the lender but eventually passes on to the borrower.
- The fee charged for a loan amount up to $150,000 is 2% of the amount.
- 3.75% of the loan amount is charged for loans beyond $1 million.
- Lower terms of loans that are less than 12 months usually charge lesser fees.
- The bank might charge other fees, such as application, credit check, appraisal, etc.
- Ensure to keep account of all the amounts, terms of the loan, and fees before evaluating the total cost of the SBA loan.
The SBA loan terms depend on the bank and your capacity to repay the loan along with the loan purpose. However, there are specific time limits set for SBA loans.
- 25 years for real estate
- Ten years for equipment
- Seven years for working capital
SBA loans, therefore, enable long repayment terms. Throughout the loan term, you should make the monthly repayments added with interest like standard term loans. Note that you may be charged a prepayment fee for 15 years or more loan terms when you make the payment within three years. Other than that, no additional prepayment fees will be applicable.
Sterling Bancorp's Application Process
The application process of Sterling Bancorp is short and simple like any other bank. All you need to do is open their official website and get to the application page. Next, you need to fill in the necessary information about yourself, your business partners and submit the essential documents.
- Gather your application materials in hand to speed up the application process.
- This also ensures that you do not forget anything while uploading the application.
- The documents include information about your business, such as an address, tax ID, business name, etc.
- You may have to submit your and your business's financial statements, such as annual revenue or profit and loss statements.
- Submit factual information about your business partners along with their percentage of ownership.
- Cater to all the bank's instructions while applying for loans to get them processed sooner and easily.
Summary of Sterling Bancorp's Loan Options
Now that you are at the end of the page, you have enough knowledge about Sterling Bancorp Small Business Loans.
However, it is always wise to have enough resources at hand in terms of finances. When planning for a small business or expanding an existing business, review other loan options to stay on the safe side.