Business & Commercial 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
Business opportunities arise in any economic environment. That’s why it is important for business owners to have flexible, convenient access to cash for business needs. Whether you want to purchase inventory, manage temporary cash-flow needs or take advantage of other options that come your way, a revolving line of credit lets your company borrow, repay the debt, and borrow funds again as needed throughout the term of the loan. A revolving line of credit often is part of a larger financial strategy that our bankers can help you create.
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:
- Machinery, equipment, furniture and fixtures.
- Investments such as marketable securities, cash value life insurance, or certificates of deposit.
- Equity in real estate.
- Accounts Receivable.
- Inventory.
- Other business or personal assets.
Commercial Real Estate Lending
Midtown Bank’s Commercial Bankers build relationships with dynamic and growing professional real estate companies and entrepreneurs, who develop, own and operate owner-occupied and income-producing properties. Our experienced bankers provide an array of services for redevelopment, refinancing, construction and acquisition. We have the experience and ability to structure transactions that best meet your needs and long-term asset strategy. Our lenders are committed to knowing you, knowing your business and knowing how to tailor a suite of financial services to help you meet your business objectives.
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:
- Purchase a primary place of business.
- Refinance an existing mortgage.
- Take advantage of low interest rate environment or other business opportunities.
- New facility construction
A commercial real estate mortgage is a longer term note secured by a 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.
We can also provide construction loans and, in many cases, a permanent loan commitment, before you ever begin construction.
Business Term Loan
Building your business often requires a steady stream of working capital. A term loan from Midtown Bank can give you the resources you need to finance expansion, add inventory, invest in new equipment or otherwise help your company grow. Our team can help you structure a deal with competitive rates and appropriate maturity. A term loan from Midtown Bank gives you the confidence to manage your working capital.
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:
- Machinery, equipment, furniture and fixtures.
- Investments such as marketable securities, cash value life insurance, or certificates of deposit.
- Equity in real estate.
- Other business or personal assets.
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