Interest rates are usually variable and tied to the Prime Rate. A line of credit is generally open for one year, with annual renewals. Term Loans - When you need working capital and want to be able to make fixed payments, Security State Bank can lend you the money on a term loan basis. This type of credit will provide the full amount of the loan at the time of your loan closing. The money is then repaid in prearranged monthly payments throughout the term of the loan.
Term can be up to five years with a twelve-year amortization schedule, depending upon collateral.
Term loans are often appropriate when the money is needed for a specific purpose, such as purchasing equipment or making capital improvements. Commercial Real Estate Loans - When you are purchasing, constructing, or refinancing commercial, industrial, or investment property a commercial real estate loan provides the longer term loan that you need. As with residential mortgages, commercial real estate loans can have fixed or adjustable interest rates. Generally, fixed rate loans are for a term of five years with an amortization schedule of up to twenty years. Our Business Bankers can assist you when it comes to building your business.