Commercial Lending FAQ
Look for a combination of local commercial banker expertise and personalized lending solutions. Seasoned commercial bankers will have expert knowledge of the local market that will help guide you in determining the best loan options and loan type for your business, such as Equipment Loan, Real Estate Loan, or Commercial Line of Credit.
A commercial loan, also called a business loan or term loan, is a loan dispersed in lump sum and typically paid back over a set term. A commercial line of credit is like a credit card, where amounts can be borrowed in installments and paid back over time.
With a secured line of credit, repayment is guaranteed with collateral, such as a property. With an unsecured line of credit, no asset or collateral is required for approval. A credit card is an example of an unsecured line of credit.
It varies. Seacoast Bank Commercial Lines of Credit provide business owners with cash flow for both small and large expenses and can be used on an as-needed basis. Because no two businesses are the same, our borrowing limits are customized to each business customer.
Funds from a commercial line of credit are typically accessed in the same manner as a checking or savings account, with draws being made either through a branch or transfers within online banking.
A commercial line of credit is a flexible financing option for businesses, allowing access to funds as needed, up to a predetermined limit. Unlike a traditional loan, which provides a lump sum, you only pay interest on the amount you borrow.
A commercial line of credit provides businesses with access to a set amount of funds that they can draw from as needed. It works similarly to a credit card: you only pay interest on the amount you use and as you repay the borrowed amount, the credit becomes available again.
Yes, a commercial line of credit can generally be used for any business-related expense, including managing cash flow, purchasing inventory, covering payroll and funding growth initiatives. There are some small exceptions.
The benefits of a commercial line of credit include:
A commercial line of credit can provide the necessary funds to cover operational costs during off-peak seasons when revenue might be lower. This ensures that businesses can maintain smooth operations, pay suppliers and manage day-to-day expenses without dipping into reserved capital.
Yes, the interest paid on a commercial line of credit may be tax-deductible as a business expense. This can reduce your taxable income, making it a cost-effective financing option. However, it's important to consult with a tax advisor to understand the specific tax implications for your business.
A commercial loan is a debt-based financing arrangement between a business and a financial institution, typically used to fund major capital expenditures, cover operational costs, or finance real estate purchases. Connect with a Seacoast Commercial Banker to discuss your unique business lending options.
Common types of commercial loans include:
Most commercial loans can be applied for online or at a bank branch and typically require the following documentation:
A commercial real estate loan can we used for a variety of purposes customized to your project needs, from purchasing a new facility to remodeling and expanding. Commercial real estate loans can often be used for:
Learn more about our commercial real estate loans or connect with a Commercial Banker for expert assistance.
Whether your business is rapidly expanding or you're exploring new markets, a Seacoast Bank Commercial Loan can be a great way to scale your business without diluting equity. Commercial loans can be used for:
Connect with a Seacoast Commercial Banker to discuss your unique business lending options.
A business equipment loan allows you to borrow money for purchasing the equipment you need to run your business. Common uses include computer equipment, vehicles, kitchen equipment, or office equipment such as furniture, medical equipment and more.
Financing your equipment through a business equipment loan can help your business:
No. A commercial real estate loan is reserved for properties used solely for business and can be used for acquisition of a building, the refinancing of an existing property, building a new facility or making improvements to your existing facility.
Learn more about Seacoast Bank's Commercial Real Estate loans
The commercial loan process can range from same-day approval to months, depending on the type of commercial loan applied for. Having your documentation ready can speed up the process considerably.
Funds from a commercial loan can be used for various business purposes, like the acquisition of a new building, refinancing of your existing property, building a new facility or making desired leasehold improvements to your current place of business.
The typical loan-to-value (LTV) ratio for commercial real estate loans ranges from 65% to 80%. A lower LTV ratio generally offers lower risk and may result in more favorable loan terms. Check with a Seacoast business banker for more details as LTVs vary by bank and financial parameters.
Yes, you can refinance an existing commercial real estate loan to secure better terms, lower interest rates or access equity for other business needs. Refinancing can help improve cash flow and reduce monthly payments.
Rates will depend on a variety of factors, including credit worthiness, the loan product chosen, loan amount and selected terms.
Connect with a Seacoast Commercial Banker to discuss your unique business lending options.
Interest rates on commercial loans are influenced by several factors, including:
The typical repayment term for a commercial loan can range from 5-25 years, with amortization periods that can extend beyond the loan term. Short-term loans may have terms of 1 to 5 years, while long-term loans, such as commercial real estate loans, can extend up to 25 years.
Some commercial loans may have prepayment penalties, which are fees charged for paying off the loan early. It's important to review the loan agreement and discuss any potential penalties with your lender before finalizing the loan.
To negotiate better loan terms and rates, businesses can:
Different commercial loan structures come with various risks and rewards:
Seacoast Bank has been successfully serving Florida business since 1926, and we are proud to offer a full array of commercial lending products and solutions that have only one objective – to drive economic efficiencies in your business. Our primary business…is your business.
Connect with your local Seacoast Commercial Banker today.
Commercial Lending Products & Solutions
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