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BUSINESS LENDING
Midtown Bank provides commercial loans to meet the growth
needs of your business. Our experienced lenders have the
objectivity to listen and the expertise to deliver comprehensive
financial solutions that are unique to your business model
and goals. We are versatile and agile in our decision process,
allowing our clients the creativity and efficiency they
deserve.
| Operating
Lines of Credit |
A commercial operating line of credit
is considered revolving short-term debt.
A line is generally approved for a specific
dollar limit and a one-year maturity.
You may pay interest only on the funds
advanced on the line of credit, with
principal repaid from conversion of assets
dictated by your company’s operating
cycle.
A secured line of credit may be collateralized
by any or a combination of the following:
| 1. |
Machinery, equipment,
furniture and fixtures. |
| 2. |
Investment such as marketable
securities, cash value life insurance,
or certificates of deposit. |
| 3. |
Equity in real estate. |
| 4. |
Accounts Receivable. |
| 5. |
Inventory. |
| 6. |
Other business or personal
assets. |
| Commercial
Real Estate Lending |
A Midtown Bank and Trust Company Commercial
Real Estate mortgage may be appropriate
for you or your company if your business
plan calls for the need to finance commercial
real estate to:
| 1. |
Purchase a primary place of business. |
| 2. |
Refinance an existing mortgage. |
| 3. |
Take advantage of low interest rate environment
or other business opportunities. |
| 4. |
New facility construction |
A commercial real estate mortgage is a longer term note
secured by a first or second mortgage on the location
you are purchasing or refinancing. The interest rate
on the loan may float based upon a predetermined index,
or may be fixed for a specific period, generally not
to exceed five years.
Midtown Bank & Trust Company will normally finance
75%-80% of the lesser of the property’s appraised
or purchased value.
We can also provide construction loans and, in many
cases, a permanent loan commitment, before you ever
begin construction.
A business term loan is generally considered a long-term
note with a maturity of one year or longer. The loan
is amortized with periodic, generally monthly, payments
of principal and interest with a variable or fixed rate of interest.
If applicable, term loans are generally written with
a maturity that coincides with the depreciable life of
the asset being purchased. However, the structure of
the loan is always dictated by the borrowing purpose
with repayments based on the company’s individual
operating cycle.
A business term loan is secured by collateral. Types
of collateral for a term loan may consist of any combination
of the following:
| 1. |
Machinery, equipment, furniture
and fixtures. |
| 2. |
Investments such as marketable securities, cash
value life insurance, or certificates of deposit. |
| 3. |
Equity in real estate. |
| 4. |
Other business or personal assets. |
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