Friday, October 31, 2008

My bank is making loans

Last week I mentioned that I was applying for a bank loan (The Green CPA: Local Banks Still Making Loans) and that I would report back on my results.

I stopped by my bank this morning and found out my new business was approved for a VISA card as well as a $10,000 3 to 5-year fixed rate loan to acquire equipment. The loan fee was 1% with a 10 percent rate. This feels a bit steep but there you have it.

I'm sure I could have gotten approved for more but I'm not likely to use this loan since I have access to cheaper sources of money. The point of the story remains the same - local banks with whom you have a relationship are making loans, even in this uncertain market.

1 comment:

Brian C. Setzler, CPA said...

I was at a client's on Tuesday who was closing on a $150,000 refinancing loan.

My client had purchased equipment a few years back with 60-month repayment terms and by restructuring these loans to new 60-month amortization schedules, they were able to free up over $5,000 per month in cash.

Again, know thy banker and have a solid plan for repayment and loans can be had.