women business owner excited looking at her computer

Operating a business comes with plenty of tough financial decisions. Among these is often the same concern: how do I fund my next project or purchase? Businesses tend to face expenses much higher than the average individual, and securing enough money to accomplish your business goals can be a challenge. That’s why Woodsboro Bank is proud to offer commercial lending options to local businesses in need of capital. While the exact details of a commercial loan will vary from business to business, here’s what you need to know.

What Commercial Loans Can Do For You

Commercial loans are specifically designed to help businesses fund their operations. Sometimes, depending on the type of loan you qualify for, you may be required to use the money on specific things. For example, an SBA real estate loan must be used on real estate—you can’t use that money on payroll. However, general commercial lending options also exist. These broad-spectrum loans can be used for:

  • Operational costs
  • Purchasing or upgrading a facility
  • Buying equipment
  • Payroll
  • Supplies
  • Inventory

These are just some of the many examples. Woodsboro Bank is happy to sit down with you to learn more about your specific situation so that we can offer solutions that are tailored to you.

Qualifying For A Commercial Loan

local business owner standing in front of shop

As with any loan, a lender will evaluate how likely you are to be able to pay it back. For a business, this usually means showing your balance sheets or other evidence of your cash flow. The lender wants to see that you consistently earn money so that they feel confident that you will be able to make your payment each month. Many times, a commercial loan will be secured by the item it was used to purchase. For example, if you need a business loan to buy heavy machinery or a building, the machine or building serves as collateral. Because there is a physical object that the lender can seize in the event of a default, you may qualify for lower rates or more favorable terms than you would with a personal loan.

Types Of Commercial Loans

There is no such thing as a single, unified “commercial loan” product. Instead, you have the choice among a variety of options, including:

  • Construction loans
  • SBA loans
  • Commercial auto loans
  • Lines of credit
  • Equipment financing
  • Inventory financing

If your business needs an injection of cash, there is likely a loan type that is tailored for your situation. You do not need to make that decision on your own; the experts can help.

Trust Your Local Bank To Offer Personalized Commercial Lending Services

At Woodsboro Bank, we are proud to support our local businesses with commercial lending options. Reach out to schedule an appointment to discuss your goals. We are happy to provide personalized recommendations for the type of loan that would suit your needs best.