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Commercial loan requests will be considered and approved subject to adequate financial information being provided to the Bank. All information provided to the Bank must be acceptable to the Bank in the Banks sole discretion. Gladewater National Bank offers our commercial customers a variety of loan products to meet their business needs.
Business Acquisition Loans The Bank will consider requests for business loans for the purpose of acquiring businesses that are related to an existing business or in some cases in a business that is unrelated however in these situations Gladewater National Bank would be required to satisfy itself that the businesses were in fact compatible or that the ownership/management of the existing business had the required knowledge and/or sufficient expertise to manage, administer and operate both businesses in an acceptable manner.
The Bank will consider requests for business loans for the purpose of acquiring business related equipment. In these situations applicants/customers of the Bank would need to be able to establish an acceptable explanation regarding the need for the equipment and a satisfactory plan which would indicate the cost and the anticipated benefit to the business coupled with an acceptable cash flow statement indicating with in a reasonable certainty that the business was capable of retiring the obligation within a reasonable amount of time for loans of this nature.
The Bank will consider may consider requests for business loans for the purpose of financing business accounts receivable. In these situations, applicants/customers of the Bank would need to establish an acceptable explanation regarding the need for this type of financing request. Typically, financing of this nature is done on a specific need basis predicated on and secured by “specific accounts receivables” that are aged and are current within 60 days from invoice date (qualified receivables) and based on a 70% borrowing base arrangement. Receivables older than this would not be considered as acceptable (non-qualified receivables). The applicant would be required to demonstrate in a business plan the need, the anticipated benefit to the business coupled with an acceptable cash flow statement indicating with in a reasonable certainty that the business was capable of retiring the obligation within a reasonable amount of time for loans of this nature while allowing for the financing costs to be paid from the collection of the receivables as they are collected and applied to the respective note which they secure.
The Bank will consider requests for business loans for the purpose of business inventory held for resale. These types of loans would generally be predicated on a borrowing base of 50 %. In these situations applicants/customers of the Bank would need to be able to establish an acceptable plan with explanation regarding the need for the inventory financing. A satisfactory plan indicate the anticipated benefit to the business coupled with an acceptable cash flow statement indicating with in a reasonable certainty that the business was capable of retiring the obligation within a reasonable amount of time for loans of this nature.
The Bank will consider a permanent mortgage loan request by an applicant whether that applicant is an individual or a business. These requests are for the purpose of purchasing a commercial piece of property. In these situations, the Bank would not loan an amount greater than 65% of the value of the real estate. In these situations, if an appraisal is required, the appraisal must be ordered by a financial services institution and must be addressed to a financial services institution if the request was not originally undertaken with the Gladewater National Bank. If the request is originally undertaken by the customer with the Gladewater National Bank then the appraisal will be ordered by the Gladewater National Bank and addressed to the Gladewater National Bank. The types of maturities for this type of loan would be (1) six months if being held to develop within this time frame and (2) up to 36 months at either a fixed rate or at a variable rate tied to a particular index established by the Bank if not being immediately developed. The Bank will not be able to use an appraisal by a licensed Texas General Real Estate Appraiser if the appraisal is addressed to the property owner.
The Bank will consider Interim Construction Financing under the Laws of the State of Texas for the purpose of allowing applicants the opportunity to borrow money for the purpose of “Interim Construction Financing” of a building suitable for their operation. This type of borrowing requires that the applicant provide “acceptable bids” coupled with a budget of the anticipated cost of the project, anticipated completion date, contingency plan for cost overrides and a plan for carrying the project if the applicant is unable to obtain permanent financing with a lender other than Gladewater National Bank. Gladewater National Bank in its sole discretion may determine and require an appraisal of the property to determine the viability of the loan request associated with the intended Interim Construction project. In these situations, the Bank would not loan an amount greater than the lower of (1) the cost or (2) “as completed” appraised value not to exceed 80 % on non-owner occupied property and 85% of the value of the real estate and any improvements existing on the real estate on owner occupied property. In these situations, if an appraisal is required, the appraisal must be ordered by a financial services institution and must be addressed to a financial services institution if the request was not originally undertaken with the Gladewater National Bank. If the request is originally undertaken by the customer with the Gladewater National Bank then the appraisal will be ordered by the Gladewater National Bank and addressed to the Gladewater National Bank. The Bank will not be able to use an appraisal by a licensed Texas General Real Estate Appraiser if the appraisal is addressed to the property owner.
The Bank will consider a permanent mortgage loan request by an
applicant. The requests are for the purpose of purchasing a parcel of
real estate or for the purpose of purchasing a building to house their
operation. In these situations, the Bank would not loan an amount
greater than the lower of (1) the cost or (2) “as completed” appraised
value not to exceed 80 % on non-owner occupied property and 85% of the
value of the real estate and any improvements existing on the real
estate on owner occupied property. The value of the real estate and the
improvements would generally be predicated on an appraisal of the
property and the respective improvements. The types of maturities for
these type loans vary from 1 to 5 year mini-perm loans at variable rates
tied to a particular index established by the Bank to as much as a 15
year loan at a variable rate tied to a particular index. The Bank will
not be able to use an appraisal by a licensed Texas General Real Estate
Appraiser if the appraisal is addressed to the property owner. |
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