Business Loans FAQ’s

• How quickly will I receive a decision on my business loan?
• How quickly will I receive the money from my business loan?
• Will North Shore Bank require personal guarantees for business loans?
• What is the interest rate for business loans?
• What fees will be charged?
• What will my closing costs be?
• What kind of equipment will the bank lease to my business?
• What financial information will I need to provide for a business loan?
• Does North Shore Bank make working capital loans?
• Does North Shore Bank finance equipment?
• Do I need a down payment?
• What are the longest terms North Shore Bank will offer?
• How does a line of credit work?
• I have not decided specifically what I want to purchase. Can I be pre-qualified or pre-approved for a loan?
• Does North Shore Bank make Small Business Administration (SBA) loans?
• If I have my loan with North Shore Bank, am I required to have my checking and savings accounts with you?

Q: How quickly will I receive a decision on my business loan?
A: You will usually receive an answer within three business days from the date North Shore Bank receives your completed application. All information requested on the application must be received before the application is considered complete. Decisions are often provided in a shorter time frame, and occasionally additional time may be required.

Q: How quickly will I receive the money from my business loan?
A: If the collateral does not involve real estate, funds are often available within a few days of approval. If loans are secured by real estate, the process may take a couple of weeks. Advise your North Shore Bank loan officer of your needs, and we will do our best to meet them.

Q: Will North Shore Bank require personal guarantees for business loans?
A: In general, North Shore Bank requires personal guarantees from anyone who owns 20% or more of a business.

Q: What is the interest rate for business loans?
A: Typically, rates will be based on the prime rate of interest plus a margin. Rates will vary, however, based on the following:

• Amount of the loan request.
• Amount of business the borrower does with North Shore Bank.
• Financial condition of the borrower and guarantors.
• Loan fees charged.
• Prevailing market interest rates.

Q: What fees will be charged?
A: Fees charged vary from loan to loan depending on a variety of factors as follows:

• Amount of the loan request.
• Amount of business you do with North Shore Bank.
• Financial condition of the borrower and guarantors.
• Interest rate.

Q: What will my closing costs be?
A: Closing costs vary from loan to loan, depending on a variety of factors. Closing costs typically cover recording fee, research and other documentation required.

Q: What kind of equipment will the bank lease to my business?
A: North Shore Bank leases almost any type of equipment your business may require, including machinery, construction equipment, computer systems, phone systems and more. The value of leased equipment typically ranges between $10,000 and $250,000.

Q: What financial information will I need to provide for a business loan?
A: The information requirements for loans vary, based on the size of your loan request and the balance of your existing loans with North Shore Bank. Typically, we require 2-3 years of business financial statements and personal financial statements of any applicant who owns 20% or more of the business.

Q: Does North Shore Bank make working capital loans?
A: Yes, North Shore Bank provides working capital loans to established businesses with good credit records.

Q: Does North Shore Bank finance equipment?
A: Yes, North Shore Bank finances and leases equipment. We provide loans and leases to acquire new or used equipment, and we consider requests to refinance existing equipment loans.

Q: Do I need a down payment?
A: Yes, down payments for business loans are required. They typically range from 20%-25% of costs for real estate loans and 15%-20% of costs for equipment loans. Equipment leasing may reduce the down payment requirement. If you wish to seek financing to start up a business, you will typically be expected to provide at least 20% of the total initial cost. These are ranges and may be higher or lower, depending on your individual request.

Q: What are the longest terms North Shore Bank will offer?
A: The maximum term North Shore Bank can provide depends on the purpose of the loan and the available collateral.

Q: How does a line of credit work?
A: A line of credit is an agreement between your company and North Shore Bank that allows your business to borrow up to a specified maximum amount, and until the maturity of the note, to repay the loan as your cash flow permits. Any payments by your business prior to maturity makes it possible for your company to borrow additional funds equal to the sum of those payments. A line of credit works much the same as a credit card for your business, but typically with a higher maximum and at a better rate.

When your line of credit matures, the bank will review your company's updated financial information, payment record and line-of-credit usage. We will then work with you to determine how you can best benefit from the credit you have established. Together, we’ll decide whether your line of credit should be renewed, repaid in regular monthly payments or repaid in a lump sum payment.

Q: I have not decided specifically what I want to purchase. Can I be pre-qualified or pre-approved for a loan?
A: North Shore Bank will consider requests to pre-qualify applicants for the purchase of vehicles, equipment or owner-occupied real estate. We cannot pre-qualify applicants for working capital loans or investment real estate loans.

Q: Does North Shore Bank make Small Business Administration (SBA) loans?
A: Yes, North Shore Bank makes Small Business Administration (SBA) guaranteed loans. Initially, the process of applying for a Small Business Administration (SBA) guaranteed loan is no different from applying for a conventional North Shore Bank small business loan.

Q: If I have my loan with North Shore Bank, am I required to have my checking and savings accounts with you?
A: Yes, if you have a loan from North Shore Bank, we require that your checking and savings accounts also be at North Shore Bank. Our bankers will help you choose the right accounts for your needs. Exceptions are sometimes made in the case of equipment or vehicle leasing.