Glossary of Business Loan Products

Business Construction Loans for the purpose of financing the development of commercial real estate projects. Commercial construction loans may be limited to those projects where Tri City National Bank is providing the permanent mortgage or where take-out financing has been pre-approved.

Business Letters of Credit are used to guaranty payment to municipalities for completion of real estate development loans as well as to facilitate the shipment of goods, particularly in import and export transactions. These letters of credit may be drawn against by the beneficiary under predetermined circumstances and are issued for a customer of good standing and secured by approved collateral.

Business Mortgage Loans may be considered for non-speculative business purposes. Loans will be considered on both owner occupied and investment/income producing properties, such as industrial and office buildings and retail centers.

Lines of Credit and Short Term Loans normally finance seasonal inventory and increases in accounts receivable, with repayment within your business cycle up to a maximum of 12 months. An annual "at-rest" condition is customary with lines of credit.

Secured Loans are granted when the bank takes collateral in the form of equipment, real estate, marketable securities or Certificates of Deposit.

Term Loans are typically written for 3 years to fully amortize over the term of the loan. However, larger purchases can amortize over a longer period, depending on the useful life of the fixed asset(s) supporting the credit. Present and projected cash flow should support the proposed and existing amortization requirements.