Loan Basics
This is the minimum loan size for a term loan?
$5,000
This is the minimum credit score a borrower must have to qualify for a term loan.
650
This is how prepayment fees are typically calculated
What is a declining %
This is how a Relationship Manager understands the specific need of borrowing
What is Business First process
These are the three common purposes for taking out a term loan.
Long-term working capital
Business expansion
Equipment purchases
This type of interest rate is often preferred for predictable budgeting.
What is fixed rate?
This fee is charged by lenders to cover the administrative costs of processing a loan application.
What is an origination fee?
These are two ways term loans are generally secured.
Personal guarantees
Acceptable collateral
Unlike a line of credit, a term loan is best used for this type of expense.
What is long term investment or one time purchase?
The process by which a loan is repaid in equal payments over its life.
What is amortization?
This is a flat fee applies for a loan documentation
$300
This is the minimum time a borrower must have owned the business (non-SBA loans).
1 year
An annual review is required for all loan of this amount.
What is greater than $1 million
Before approving a term loan, M&T Bank will access these two major financial factors from the business
What are creditworthiness and cash flow
This is the standard commitment/origination fee
What is 0.50%
Name two types of acceptable collateral
All business assets
Equipment
Accounts receivable
M&T deposit accounts
Marketable securities
Collateral mortgages
Cash value life insurance
This is the maximum length of time typically offered for repayment on an M&T term loan
What is 5 to 10 years ?
This is a limit on how much an interest rate can increase over time on an adjustable-rate loan.
What is an interest rate cap?
This is the fee if a borrower is late on a payment.
What is the greater of 5% of delinquent payment amount OR $50
This type of collateral is not tied to a specific asset but is instead backed by the general creditworthiness of the borrower.
What is unsecured collateral?