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What initial information is usually required to apply for a business loan or line of credit with MutualBank?
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What initial information is usually required to apply for a business loan or line of credit with MutualBank?

We require the last three years’ financial statements/tax returns for the company and last three years’ tax returns for the guarantors. Also, a current Personal Financial Statement for any and all guarantors would be preferred.

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How do I inquire and/or apply for a business loan or line of credit? What’s the best way to start the process?
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How do I inquire and/or apply for a business loan or line of credit? What’s the best way to start the process?

Contact any of our commercial or business bankers! 

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Is there a minimum amount of years a business needs to be in operation before applying for a business loan or line of credit with MutualBank?
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Is there a minimum amount of years a business needs to be in operation before applying for a business loan or line of credit with MutualBank?

No, MutualBank finances all kinds of businesses regardless of their time in business. Yes, there are usually some additional pieces that may have to be in place for a “startup business” but we are delighted to work with all businesses.

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What factors go into the decision of evaluating a business loan application or line of credit for approval?
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What factors go into the decision of evaluating a business loan application or line of credit for approval?

“Cash Flow is king”
Without the proper cash flow, a company cannot repay its loans and indeed should likely consider alternative means of financing their activities.

Character
Does the business owner possess the character that says that when things don’t go as planned that they will do all that they can to repay the loan and work with the bank?

Collateral
While MutualBank will certainly entertain “unsecured” loans, most Commercial and Business loans will have some sort of collateral tied to it.

Capacity
Does the company have the capacity to absorb the additional debt without being overly leveraged and potentially be in a position of weakness?

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Who decides whether my business loan or line of credit application is approved or declined?
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Who decides whether my business loan or line of credit application is approved or declined?

MutualBank’s Commercial Bankers all have loan authority and recommend actions on any of the credits for which they are responsible. There are local decision makers in each of the bank’s regions who also have approval authority that can be combined with the bankers to approve larger deals or to recommend review through the bank’s Commercial Loan Committee. 

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What are some common reasons that a business loan or line of credit application is declined?
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What are some common reasons that a business loan or line of credit application is declined?

Some common reasons include:

  • Guarantor’s credit is poor
  • Prior bankruptcy of the company or guarantor(s)
  • Insufficient cash flow to repay the loan
  • Excessive debt leverage of the company
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Can I manage and keep tabs on my business loan or line of credit online?
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Can I manage and keep tabs on my business loan or line of credit online?
Absolutely! Our robust Business Online Banking system allows for the ability to track deposit and loan activity, integrates with ACH payment system, and much, much more. You can learn more about it here.
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What broad factors usually determine the interest rate of a business loan or line of credit?
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What broad factors usually determine the interest rate of a business loan or line of credit?

The same areas of consideration listed here regarding the whether a loan or line of credit can be approved are usually the same considerations when it comes to formulating interest rates for clients.

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Are there any states MutualBank cannot provide business loans or lines of credit in? Why?
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Are there any states MutualBank cannot provide business loans or lines of credit in? Why?

MutualBank’s service area is predominately the Northeast portion of the state of Indiana but we also routinely serve clients in Ohio and Michigan when the need arises. While we also have clients that live outside of our service area, they typically have projects in Indiana.

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I prefer to pay monthly business loan / line of credit payments by check. Where do I send the check to?
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I prefer to pay monthly business loan / line of credit payments by check. Where do I send the check to?

You can drop off your check at any of our financial centers or mail the check to our main office at:

110 E. Charles St.
Muncie IN 47305

 

 

These questions and answers are provided for general information only and may not be completely accurate in every situation. The information provided is not legally binding on MutualBank or any of its affiliates or subsidiaries. For assistance with specific questions regarding your account(s), please contact us.

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