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What are the different business loan term lengths MutualBank offers?
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What are the different business loan term lengths MutualBank offers?

Depending on the kind of loan that a client needs to establish, the bank can provide flexible terms that will match the loan to the kind of asset that is being purchased or assisting in financing. From loans less than 12 months to real estate mortgage loans in excess of 20 years, the bank can provide them all.

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Are there fees or other costs with a business loan after it has been approved aside from monthly payments?
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Are there fees or other costs with a business loan after it has been approved aside from monthly payments?

Typically, there is a Loan Origination Fee and depending on what is being used as collateral there may be ancillary costs such as an appraisal but the bank believes that the client should not be assessed extraneous fees. Our relationship with our clients is centered around doing what is best for both parties (the bank and the client).

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Does it cost anything to talk through loan options with a MutualBank commercial banker?
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Does it cost anything to talk through loan options with a MutualBank commercial banker?

Absolutely NOT! MutualBank prides itself in having Commercial/Business Bankers who are ready to assist and guide you through the whole process. Our team of experts want to ensure that you’re getting the best advice possible.

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After I submit my business loan application, how quickly can I expect to hear back regarding its approval or denial?
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After I submit my business loan application, how quickly can I expect to hear back regarding its approval or denial?

It depends. If the loan is large enough to be elevated to an approval process that includes our board of directors, it will take longer than one that only requires one or two signatures. However, regardless of the size of the loan, our goal is to make sure you know what terms and conditions the bank believes it can provide as quickly as possible so that all parties can proceed with completing whatever project it is that the client may want to start.

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How long does the complete business loan process usually take (assuming one is approved) - from application to funds disbursement?
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How long does the complete business loan process usually take (assuming one is approved) - from application to funds disbursement?

It depends. If the loan is secured by business assets only and there is no need for an appraisal of real estate, the loan can be completed within three or four business days of approval. If the loan has the need for a commercial real estate appraisal, it may take up to an additional four or five weeks depending on the appraiser, environmental assessments, title work, and flood certification.

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What factors typically determine how much money a business can borrow with a business loan?
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What factors typically determine how much money a business can borrow with a business loan?

These factors listed below usually have the largest influence on how much money a business can borrow with a business loan:

  • Collateral
  • Ability to cash flow the amount borrowed
  • Leverage within the company
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Is a minimum down payment usually required with a business loan? If so, how much is usually required?
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Is a minimum down payment usually required with a business loan? If so, how much is usually required?

Typically the bank likes to have at least 20% of the purchase price as equity from the borrower but in certain circumstances the bank can use other assets to compensate for less money down. In other situations the bank can look at less money down depending on the condition of the business.

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What types of collateral can typically be used to secure a business loan?
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What types of collateral can typically be used to secure a business loan?
  • Commercial Real Estate
  • Investment Real Estate
  • Business Assets (for example, equipment, accounts receivable, inventory, value within the company)
  • Personal Assets (for example, stocks, bonds, mutual funds, equity in personal real estate, vehicles)
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What are the business insurance requirements to apply for a business term loan?
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What are the business insurance requirements to apply for a business term loan?

Typically, if the business or guarantor provide an asset as collateral for the loan, the bank will ask that it be named as an additional insured/loss payee on the insurance clause.

 

 

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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