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Business Loans

For many companies, commercial business loans are a key to growth. They provide an immediate infusion of funds that can be used for a wide variety of purposes: one-time expenditures (like fixed-asset purchases), permanent working capital, expansion or acquisition, or taking advantage of growth opportunities.

 

Business Loans Comparison Chart

Use the chart below to compare the different business loans offered by FNCB side by side. This will help you decide which one is the best fit for you:

Type of Account

Purpose

Maturity

Collateral

Payment Terms

Compare Accounts

Term Loan

Various business purposes

12 to 84 months

Secured or unsecured

Principal and interest monthly

Time Loan

Working capital; bridge financing

Up to 24 months

Secured or unsecured

Interest monthly, principal at maturity

Line of Credit

Working capital

Revolving

Secured or unsecured

Interest monthly, principal on demand

Mortgage Loan

Commercial real estate acquisition/improvement; debt refinance

Up to 20 years

Commercial real estate

Principal and interest monthly

Construction Loan

Commercial real estate construction

Mini-permanent or permanent financing

Commercial real estate

Interest only monthly (during construction) / principal and interest monthly

Letter of Credit

Performance / payment assurance

Specific maturity

Secured or unsecured

Interest monthly, principal on demand (if drawn upon)

Municipal Financing

Real estate acquisition / improvement, tax anticipation financing, other general purposes

Varies based on type of financing

Generally secured by the full faith, credit and taxing authority of the public entity

Varies based on type of financing

Term Loans

This type of loan provides a set amount of money to purchase assets or meet another specific financing need. Repayment is based on a predetermined schedule or by making monthly principal and interest payments. A term loan can be secured or unsecured, and the interest rate is generally fixed for the life of the loan.

  • Loan proceeds can be used for fixed asset acquisition, permanent working capital, refinance existing debt or other business purposes.
  • Loan terms generally range from 12 to 84 months.
  • Fixed rate or variable rate loans.
  • Collateral consists of assets being purchased or other assets owned by borrower/guarantor.
  • Regular monthly payments of principal and interest.

Time Loans

This type of loan is generally used for short-term working capital or bridge financing. The interest rate may be fixed or variable, with interest generally paid on a monthly basis.

  • Loan proceeds are generally used for short-term working capital or bridge financing.
  • Loan terms do not exceed 24 months.
  • Fixed rate or variable rate loans.
  • Loans are either secured or unsecured.
  • Interest is generally payable on a monthly basis.
  • The outstanding principal balance is payable at maturity.

Line of Credit

With a line of credit, you can easily tap pre-approved funds when you need them without having to wait for bank approval. These funds can be used for a variety of business purposes, from meeting short-term working capital needs to purchasing inventory.

  • Revolving, short-term working capital financing.
  • Either secured or unsecured.
  • Periodic renewal.
  • Interest only payments due monthly.
  • Periodic principal repayment.

Commercial Mortgages

With a commercial mortgage, you can purchase, expand, improve or refinance owner-occupied commercial property.

  • Loan proceeds are used for the acquisition or improvement of commercial real estate, or to refinance existing debt.
  • Loan terms are available up to 20 years.
  • Fixed rate or variable rate loans.
  • Loans are secured by commercial real estate.
  • Regular monthly payments of principal and interest.

Construction Loans

These loans can help finance the construction of new buildings, improvements to existing buildings, and land acquisition.

  • Construction only, mini-permanent or permanent construction financing available.
  • Loan proceeds can be used for the acquisition of land and the construction of a new structure or significant improvements to an existing structure.
  • Loan term for construction only generally does not exceed 12 months.
  • Permanent financing is available for terms up to 20 years.
  • Fixed rate or variable rate loans.
  • Loans are secured by commercial real estate.
  • Interest only payments during the construction period, followed by regular monthly payments of principal and interest thereafter.

Letter of Credit

A letter of credit is an assurance that your company has the financial resources to perform as agreed under contract.

  • Stand-by letter of credit used to assure payment to a beneficiary in the event the borrower fails to pay or perform.
  • Secured or unsecured
  • Specific maturity, generally one year.
  • Interest payments monthly if drawn upon; principal will be payable on demand.

Municipal Financing

Public entities, municipalities and school districts often need financing for a wide range of different purposes.

  • Financing is available for various purposes including real estate acquisition and improvement, tax anticipation financing and other general purposes.
  • Terms vary based on purpose.
  • Generally secured by the full faith, credit and taxing authority of the public entity.
  • Fixed rate and variable rate loans.

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