Lines of Credit
Working Capital Loan
Real Estate Loan
Start Up Loan
Letters of Credit
The success of your business is very important to Blue Ridge Bank. Our loan officers will work hard to help your business grow and prosper. BRB provides an experienced professional loan staff, competitive rates, knowledge of our market and local-decision making. At different times in the business cycle, your business may have short and long term financing needs. Blue Ridge offers the following types of financing to help accomplish your business goals:
A Term Loan is used to purchase equipment or other fixed assets, expand
inventory or expand the business and is repaid over a specific time period.
Lines of Credit are used to take advantage of trade discounts, finance
accounts receivable or inventory and is repaid as the receivable or inventory is converted into cash.
In addition to the above uses of a business line of credit, a Working Capital Loan may provide a solution to your seasonal need for cash to pay vendors or employees on a timely basis and is repaid as the seasonal need for cash diminishes.
Real Estate Loans provide long term financing for purposes of business
expansion or to purchase or refinance commercial property such as hotel-motel property, office buildings, multi-family residential property or non-owner occupied residential property, retail property, manufacturing property, or any other income producing investment property. This would also include the interim financing for the construction of the above properties as well as construction lines for commercial and residential land development projects.
Contact us for assistance with loan programs offered through the U.S. Small Business Administration (SBA).
Small business loans are available for businesses that are just starting when the business plan shows there are good prospects for a profitable future. These loans may be partially guaranteed under one of the SBA programs.
BRB offers standby letters of credit when it is necessary to substitute the credit standing of the Bank in connection with transactions between two other parties.
This instrument is used when one of the parties requires assurance of payment before entering into an obligation with the other party. An example where this may be used is submitting bids for the sale or purchase of goods or the performance of services.
Blue Ridge offers short and long-term agriculture loans for financing livestock, crops, equipment, land acquisition and other agricultural related projects.
In order to begin the loan application process, you should gather some basic information to present to the Bank. This information is necessary for us to make a fast and informed decision and provide you with the best rates and terms possible. This information is called the “loan package”.
A loan package is the information the Bank needs to understand your business and make an informed decision on the products that are right for you. When developing your loan package, you will need to include a description of your products and services, an overview of key personnel and their backgrounds, a description of the market in which you operate (competition), and future plans for your company.
Financial information on your business provides the key to understanding how your business has performed in the past and why it may need a loan. The following basic financial information will be required to evaluate your loan application:
If your business is more than three years old, we will request three years of financial statements and business tax returns.
If less than three years old, we will request all financial statements and tax returns to date.
If you are just starting your business, we will request an opening balance sheet and projections as well as a completed business plan.
By providing complete financial information, you help communicate your financial condition and the results of your operations to us. The statements should be prepared in "generally accepted accounting principals" so they can be easily understood. A Certified Public Accountant or business consultant can assist you in preparing the necessary information.
You will also be asked to provide a personal financial statement and personal tax returns for the past two years. This provides the Bank with a clear idea of the relationship between your personal and business finances.
Upon receipt of all necessary financial data, the Bank will then review your loan request and begin the “credit process”.
The first step in the credit process is a review of your loan package by a loan officer. Blue Ridge Bank has a legal and moral responsibility to make sound loans. Since the source of your loan funds is our depositors' money and the law requires that this money must be repaid to them, it must remain in investments that are reliable. Upon initial review of your loan package, the loan officer will evaluate it based on the criteria known as the "Five C's of Credit."
- Character – This criterion is exactly what the name implies. It involves a review of honesty, integrity, trustworthiness and management skills. A judgment is based on your business plan, credit history, and the quality of your presentation.
- Capitalization – The capital structure of your company is important to the Bank because it helps determine the level of risk associated with your loan request. An analysis of capitalization includes a review of equity, total debt, the value of assets and permanent working capital.
- Cash Flow – This is the cash your business has to pay the debt. A cash flow analysis helps the loan officer determine if you have the ability to repay the debt.
- Collateral – This provides a secondary source of repayment, thereby minimizing the risk for the Bank. The amount and type of collateral required depends on the type and purpose of your loan. Common types of collateral are accounts receivable, inventory, machinery and equipment, and real estate.
- Conditions – This refers to outside conditions that may affect the ability of your business to repay the loan. Factors such as general economic conditions or large concentrations of sales to a single customer are evaluated during the loan officer’s review of your loan application.
As all of these items are used to review your loan request, they should all be evident in your loan package to ensure a thorough review.
If the Bank approves your loan, we will structure a loan to meet your needs. Each loan is customized to your particular situation. Portions of the loan which vary include:
Upon recommendation for approval by the loan officer, the loan package is presented to the Loan Committee and/or the Board of Directors for final approval.
If you're ready to apply for a business loan at Blue Ridge Bank, please take a moment to go over the following checklist and download a printable business application to complete and bring with you when you meet with the loan officer. By bringing a complete loan package, you will ensure the fastest service and best loan structuring for your particular situation.
If you have been in business for at least three years, the following information will be needed:
If you have been in business for less than three years, the following information will be needed:
If you are new in business, the following information will be needed:
If you are applying for a loan secured by real estate, we will need the following information:
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