Business Loans
We're here to help your business grow
Take your business to the next level
Growing your business takes vision, dedication, and plain old hard work. Sometimes it takes a little money, too.
Perhaps you need money to buy new equipment, purchase more inventory, buy or build a building, expand or remodel, or add to your payroll.
The business lending specialists at TDECU listen to your plans. They take the time to understand what you need, and work with you to arrange a custom-tailored financing package that will let you put your plans into action.
TDECU offers a range of business loan solutions. Financing your business takes hard work, but our team can make it easier.
At TDECU Business Services, we fund dreams that make communities strong. So when a fourth-generation theater owner and a community development director joined forces to build a multi-million dollar family entertainment center in Bay City, we listened. Their dream was a “go-to-all-in-one” family fun center combining movies, bowling, dining and interactive amusements. The team at TDECU Business Services made it happen.
Types of business loans
SBA backed loans
As a Preferred Lender in the Small Business Administration (SBA) Loan Programs, TDECU gets members approved fast, so you can concentrate on growing your business. Through the use of these programs, TDECU can offer our members extended loan terms that we might not be able to otherwise offer, including:
- Long-term financing (up to 25 years for real estate. 10 years for equipment.)
- Down payment as low as 10% preserving vital working capital
- Fixed and variable interest rate options
- Lines of Credit available for working capital, inventory, or seasonal needs
Most businesses that are organized ‘for-profit’ and do not participate in any speculative businesses are eligible for SBA financing. Contact your local TDECU loan officer today to ask about these programs.
Commercial loans
Whether you need a commercial construction loan, mortgage, capital improvement loan, or business vehicle and equipment loan, TDECU offers low rates, flexible terms and quick approval:
- Commercial Owner-Occupied Real Estate
- Commercial Construction
- Equipment Purchases
- Revolving or Seasonal Line of Credit
Let's talk about your business needs
Securing a business loan
How to prepare your loan request
As a small business owner, you know everything there is about running your business, but you may feel a bit confused or intimidated by approaching your banker about borrowing money. At TDECU we want to put you at ease, prepare you for this conversation and give you some idea of how bankers make credit decisions. Before approaching any lender, you should carefully evaluate your financing needs. While the lender will make an assessment of their own in analyzing your loan request, you are responsible for identifying the amount of money needed for specific purposes.
How to quantify your financing needs
As the small business owner and borrower, you are responsible for identifying the amount of money needed for specific purposes. Generally, the needs of your business will fall into two broad categories:
- Expansion Capital – Used to finance business growth
- Working Capital – Used to finance short term business cash needs
The first category is considered a permanent investment in the business, which means funds will be repaid to the lender over a period of time greater than one year. Working capital can be of a seasonal nature and repayable in less than one year according to the seasonal sales and cash flow patterns of your company. Permanent working capital may be a requirement, especially if your goal is to commit funds to a permanent buildup in working assets (accounts receivable and inventory) in support of sales growth, introduction of new product lines, or territorial expansion.
How much should you borrow?
Determination of the loan amount may be a straightforward process, especially when the loan will be used to finance assets which can be readily quantified, such as land, buildings or equipment. If your business needs working capital or funds to build inventory, accurately pinpointing the amount you need to borrow can be a greater challenge. Talk with an experienced TDECU lender today. We can refer you to a reputable third-party advisor who can assist you with this decision. In either case, even if your business has a successful performance history, it is important to develop projected financial scenarios (preferably with help of a Certified Public Accountant) to justify the amount you seek to borrow. A good rule of thumb is to prepare balance sheets, income statements (at least 2 years) and cash flow projections (monthly for one year). The lender will want to carefully evaluate your historical performance as well as projections.
*Approved to offer SBA loan products under SBA's Preferred Lender program.
