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Term Loan

A Community Bank of Broward Business Term Loan may be appropriate if your business plan calls for the following actions:

  • Debt consolidation
  • Leasehold or property improvements or expansion
  • Equipment acquisition
  • New product introduction
  • Change in market strategy
  • Injection of permanent working capital
  • Financing a one-time, non-recurring expense
A business term loan is generally considered a long-term note with a maturity of one year or longer. The loan is frequently amortized with monthly payments of principal and interest, with a variable or fixed rate. Term loans are generally written with a maturity that coincides with the depreciable life of the asset being purchased. However, the structure of the loan is always dictated by your borrowing purpose, with repayments based upon your company's individual operating cycle. A business term loan is secured by collateral. Types of collateral for a term loan may consist of any combination of the following:
  • Accounts receivable
  • Inventory
  • Equipment, furniture and fixtures
  • Investments, such as marketable securities, cash value life insurance and certificates of deposit
  • Equity in real property
  • Principal's hypothecated assets
To qualify for a Community Bank of Broward Business Term Loan, your business should meet the following basic criteria:
  • Show a business history of three years' duration
  • Demonstrate sufficient cash flow to adequately meet debt service
  • Loan purpose must be for legitimate, non-speculative and legal operating needs

Need a business loan, but not sure what is right for your business?

If you need money for your business, but you are not sure what type of loan you need, please call or visit the branch nearest you and a loan officer will call you within one business day.