COVID-19 Update:

Effective Thursday, March 19, 2020, we will be temporarily closing our branch lobbies to all customers to better protect the health of our community members. However, our branches will remain operational via drive-up windows during regular business hours, and our ATMs are always available.

Should you have further questions or need to schedule an appointment for an in-person visit, please call your local Greeley branch at (970) 673-4501 or your Fort Morgan branch at (970) 867-3319.

Learn More

Commercial Loans

Commercial Loans

What Is a Commercial Loan?

A commercial loan is a type of loan in which a business borrows money from a bank or other financial institution. Usually, this type of lending funds major capital projects for the purchase of equipment or property. However, commercial loans may also fund short-term operational costs that the business cannot cashflow on its own, such as payroll or materials to produce goods for sale. Small businesses often turn to commercial loans because it is difficult and expensive to go to the bond or equity market.

Commercial loans most often take the form of a line of credit, a term loan, a mortgage, or an unsecured loan. However, some lenders do offer a renewable loan that extends indefinitely. These loans give the business money to operate on and to repay the original loan on time. Once this is done, then the loan can be renewed. This loan structure is often used by businesses that have significant seasonal expenses.

How Can a Business Qualify for a Commercial Loan?

Businesses, just like individuals, must show creditworthiness to get a loan. A company may have to demonstrate financial reports, tax returns, and other documentation to prove it can pay back the loan according to the agreed-upon terms. Commercial loans may require the business to put up collateral, such as property, accounts receivable, or equipment, to secure the loan. If the company fails to pay back the loan, the lender can take the collateral.

Once a business is approved for a commercial loan, the interest with commercial loan rates should be close to the prime lending rate at the time. The lender may require the company to submit additional documentation over the life of the loan to ensure a continuing ability to repay. If the loan funds the purchase of real estate or large items such as vehicles, the lender can require insurance on those items or property.

Why Choose FMS Bank for a Commercial Loan?

FMS Bank makes lending decisions locally, so you can get a decision quickly from people who understand the local market. Here are a few of the types of commercial loans FMS can offer your company.

    • Commercial real estate loans
    • Equipment loans
  • Lines of credit
  • Agricultural loans
  • Small Business Administration (SBA) loans

No matter what type of commercial loan you need, the experienced professionals at FMS Bank can help you with a customized loan package. Contact us today, and our reliable team can help you understand all of your options.