Ordering the right loan
Just like a fine restaurant, First National has a menu of different types of loans for all sizes of businesses wishing to borrow money.
Types of loans include:
Short term working capital loans: Loans to supplement a business’ cash flow due to delays in the collection of accounts receivables or sale of inventory. These loans are secured by the accounts receivables or inventory.
This type of loan is suited for companies that need more working capital (money) during the business’ busy months, typically during the summer. .
Revolving lines of credit: Loans that serve as an extended commitment from the bank to provide working capital for up to one year. The types of assets securing the line determine the terms of the loan.p>
Equipment and vehicle loans: Loans used to purchase new or used commercial equipment and vehicles. Repayment is typically for one to five years..
Commercial real estate loans: Loans for the purchase, refinance, or rehabilitation of various types of commercial real estate. Types of real estate include: warehouses, retail buildings, multi-use properties, multi-family properties, commercial land, etc.
Commercial construction and development loans: These loans are for the construction of commercial use properties or for the development of land for commercial or residential use. These loans also include construction loans to residential builders.
Each type of loan has a different risk associated with it, so there are different interest rates for each loan. Interest rates are governed by different economic factors, the credit philosophy of each financial intuition and loan risk level.
This bi-monthly newsletter is sent to Alaska business owners, managers and community leaders.
The articles and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest you consult your attorney, accountant, financial or tax adviser with regard to your individual situation. Entire publication. For publication information, call (907) 777-3409.