Commercial Loan Products

Signature Bank specializes in providing financing for small and medium size businesses. We define a small or medium size business, not by sales, assets or other financial measure, but by ownership. At Signature Bank, we prefer to work with businesses that have less than five owners. Our philosophy is centered on working with people, not entities. For qualifying business owners, we specialize in providing credit lines, term loans, and real estate financing for both construction and permanent financing.

Credit Lines

Typically, credit lines are established for the purpose of providing working capital relating to cash flow, seasonal needs, to fund trading assets, or to take advantage of business opportunities in a timely manner. We recommend to all of our customers that they establish a credit line with the bank. There are many benefits to arranging credit lines. They include; going through the application process without facing deadlines, applying when not facing a critical borrowing need, provide the bank with current financial history making future borrowings much easier, and the low cost of maintaining a credit line.

Example of terms and structure: Typically a credit line will be approved for a term of one year with annual renewable options. The rate will generally be a variable rate floating at prime plus 1%. Interest is charged only on the outstanding balance. A loan fee between $250.00 and 1% of the credit line will be charged; depending on the complexity of the loan request and/or monitoring of the line.

Term Loans

A structure commonly used to fund the purchase of depreciating assets such as vehicles, equipment, furniture and fixtures. Term notes are recommended or the funding of anything that wears out, needs to be replaced at a future date or will lose value over time. Simply stated, we structure the loan to pay down to zero at the same time the related asset needs to be replaced.

Example of terms and structure: Loan proceeds will be used to purchase an asset that will then be used to secure the loan. The loan balance will be set up on monthly, quarterly or annual payments to pay the loan to zero over an agreed term. In appropriate situations, the loan might be structured to pay to a specific balance and then balloon. The rate can be fixed or variable. Normally, the bank will not lock in a rate longer than 3-5 years.

Real Estate Loans

Signature Bank specializes in funding commercial building projects under $1M. We are able to take a project from start to finish whether it is new construction or an existing building. Acceptable funding purposes are lot purchases, construction loans, loans for the purchase and/or remodel of existing buildings, or refinance.

Example of terms and structure: Draw notes are provided for the construction or remodel. Loans are normally one year maturities or tied to the length of the project. They usually carry a variable rate tied to prime and require interest only payments. The draw note is normally paid at maturity via a permanent take-out.

Single payment notes can be used to purchase permit ready lots or for remodel projects pending future construction plans. Terms are for one year and carry a variable rate tied to prime.

Term notes are based on a 15-20 year amortization schedule. The interest rate will be established at the time of approval but not limited to appraisals, title insurance, filing fees, inspection fees, etc.

Our Pledge to our commercial customers

·        We will not give you the run around. At the time of the request we will let you know if we have a genuine interest. And you will receive an answer within seven days of a completed loan request.

·        Our business is to make good loans. We will approach every loan with an attitude of "how can we make this work?"  However, if we are unable to make the loan, either because in our opinion it carries too much risk or simply will not fit our  market niche, we will tell you. If we cannot complete the loan, we will provide a clear explanation and any options that we may pass along.

·        We will ask for information clearly and with a purpose. And we will only ask twice, once at the time of the application and once for supporting information.

·        Honesty and integrity will be our guiding principles. No hidden fees, no financial surprises and, "we can count", which means your loans will be calculated on a 365 day basis. Because it is the right thing to do.