A business term loan can be used to support the growth of your business. Whether you need financing for machinery/equipment, the acquisition of another business, a partner buy-out, or other needs specific to your business Clarkston State Bank can tailor a loan to meet your needs.
Our flexibility and creativity in the terms we offer can assist you in aligning your cash flow with the repayment ability of your business. So if you seeking to improve the efficiencies of your businesses operations or looking to expand; we offer local decision making to assist you here in Southeast Michigan. In addition, you will find we offer:
- Competitive fixed or floating interest rate options
- Finance up to 90% of new equipment
- Twelve month pre-approvals (Authorization Lines) on machinery/equipment purchases.
How Do Business Term Loans Work?
Term loans are generally used for a specific purpose. During the application process, our Lenders will work with you to determine the best loan product and terms that will help you grow your business and bottom line. Here are a couple example situations where a term loan would make sense:
Loan Scenario A: You own a restaurant and have been considering adding gourmet pizza to the menu to attract a broader set of customers. Do you renovate your existing space and add a couple of pizza ovens, or do consider relocating to a larger space, with additional dining area? We can assist you in comparing the two options from a cash flow, terms and repayment basis that will allow you to make a sound business decision.
Loan Scenario B: You own a technology business and have recently been awarded a new contract that will require additional staff and new equipment. You have the cash to buy the hardware; but do you use it or borrow the funds for the equipment. The decision depends on your cash flow needs and ability, especially if there is 60-90 day delay from billings to the receipt of the payment. It may make sense to secure financing for 24-36 months for these types of purchases to match expenditures to income recognition, thus stabilizing your monthly cash flow.
In addition, we will share and recommend other types of financing options, such as a Business Line of Credit, if they make sense for your business and needs.