Now's the Perfect Time for Businesses to Apply for Commercial Loans, Say Experts at Farmers & Merchants Bank

TALLAHASSEE, Fla., Feb. 16, 2012 /PRNewswire/ -- With the economy slowly making a comeback, commercial loan rates are at attractive levels. The Biz2Credit Small Business Lending Index, a monthly analysis of 1,000 loan applications, revealed that approval rates of small businesses seeking business loans from small banks increased to their highest levels in December 2011.

Now is the ideal time for those considering a new business venture or expansion to begin the loan application process, say business banking experts at Farmers & Merchants Bank (FMB). Loan officers at the Tallahassee bank, which serves Greenville, Monticello and Tallahassee, Fla.; Thomasville, Ga.; and surrounding counties, outline the steps of obtaining a business loan:

1.      Make the decision to take on business debt: Consider your business plan in increments of one month, six months, one year and five years and whether projected growth supports debt.

2.      Determine whether the business needs a short- or long-term loan: For example, a line of credit would be a short-term loan, while a mortgage would be long-term.

3.      Contact a loan officer at FMB to evaluate current finances: Businesses must provide current statements of profit and loss, as well as account balances. They must show either three years of prior statements or three years of tax returns.

4.      Discuss your business need and desired loan terms with your loan officer: Businesses must outline the purpose of the loan - for example, a new building, equipment or inventory - and the collateral they can offer. The bank will conduct a cash flow analysis to determine your ability to pay the debt.

5.      Reach a loan agreement: Following loan approval and paperwork, funds are disbursed.

6.      Maintain your loan: Federal regulations dictate annual updates of personal and corporate financial statements for the life of the debt. Commercial loan rates generally are fixed for two to five years then balloon after that, even on a 20- or 30-year loan. Lines of credit typically have a one-year term followed by a balloon, and if they become a longer-term commitment, a loan officer can help you transition to another form of loan.

R. Michael Sims, President/CEO of FMB, suggests that businesses seeking loans in Tallahassee come in for a free consultation. "It doesn't cost anything to talk with us, but it can save your business money long-term. We never forget that local businesses are the mainstay of job creation, and a key to helping families grow and prosper. Among the banks in Tallahassee, we are unique in that we go the extra mile to ensure that businesses succeed."

About Farmers & Merchants Bank

Farmers & Merchants Bank was formed in 1907 with $25,000 by a group of local entrepreneurs in Monticello, Fla. Today, FMB has eight locations in Florida and Georgia and a full array of electronic banking services. Visit FMB online at https://www.fmbbank.com/.

Contact:

Tallahassee, Fla.
Don May
850-668-0789 ext. 1901
[email protected]

Monticello, Fla./Greenville, Fla.
Jerry Boatwright
850-997-6000 ext. 1024
[email protected]

Thomasville, Ga.
John Everett
229-228-5904 ext. 1229
[email protected]

This press release was issued through eReleases(R).  For more information, visit eReleases Press Release Distribution at http://www.ereleases.com.

SOURCE Farmers & Merchants Bank