Note: This article is for educational purposes only. It should not be considered as investment or personal finance advice.
While most banks offer commercial and industrial (C&I) loans, Pan American Bank & Trust gives entrepreneurs more than just capital. We equip owners with a team of decision-makers dedicated to seeing their businesses grow.
What is a C&U Loan?
A commercial and industrial (C&I) loan is a loan made to a business to provide it with funds that can be used for day-to-day operational needs (working capital) or to purchase machinery. We frequently work with companies seeking working capital to pay their employees, bills, and inventory needs.
Commercial and industrial loans usually have variable interest rates tied to the bank’s prime rate or another benchmark rate. Many borrowers must also file regular financial statements, which could be monthly, quarterly or annually. This helps banks get a complete picture of a business’s financial health.
Obtaining a C&I Loan
In order to obtain a C&I loan, a business needs to put together a proposal that may include some of the following:
- A business and management experience profile
- Business plan
- Loan request (i.e. type of equipment being purchased, line of credit size)
- Loan repayment
- Personal and business financial statements
- Income and cash flow projections
Benefits of a C&I Loan
C&I loans allow businesses to bypass the typically laborious process of obtaining equity investors. While investors can add value to businesses with their capital, and networks, C&I loans can help companies raise funds needed for expansion in more straightforward terms.
Securing C&I Funds
We understand how important it is for businesses to have access to cash flow. When owners get in touch to discuss C&I loans, our relationship bankers visit their job sites to understand how they operate.
“We strive to understand the business almost as well as the business owner does,” says Joe Haugh, Executive Vice President & Director of Lending.
We often bring our President or Chairman to client visits, so business owners feel confident in their decision to bank with us.
“We’re showing our clients that they have a team of decision-makers dedicated to their account and success,” says Haugh.
What sets us apart from national banks is that we are not a multi-layer decision-making bank. The same people who visit clients make decisions on our loan committee. If a business tells us they need to buy a piece of equipment tomorrow or they need cash flow now, our team is empowered to give them a quick yes or even quicker no so they can move forward or pivot accordingly.
“You’ll never meet the bank president or chairman of a larger bank,” says Haugh. “The exposure to the executive team is what sets us apart. We’re coming to you owner to owner, entrepreneur to entrepreneur.”
Continued C&I Support
Our relationship bankers provide continued support to all of our business clients. When we aren’t having one-on-one conversations with our clients, they’re communicating with us through their financial reporting.
We also advise our clients on purchasing decisions, like whether they should buy or lease equipment and the tax advantages of either situation. Choosing us as your lending partner means you get more than capital – you also get bespoke advice and continued support from bankers who care.