Whether you’re filling out an application or making the final payment on a business loan, we’re with you every step of the way. We talked to Gene Anderson, Vice President, Commercial Underwriting, who offered five things your Fremont Banker will do — from the practical to the inspirational.
1. Let’s double-check the UCC.
A nitty-gritty, but important, one when closing out a loan! If your business loan helped you buy a piece of equipment or machinery, the lending bank will take a UCC, a Uniform Commercial Code Financing Statement. This document serves as a lien on commercial property in a business loan. The UCC acts like an ID number or a vehicle identification number (VIN) on a car.
The UCC filing should be closed out once you pay off an equipment loan. However, we’ve heard that many lenders don’t do this unless they’re reminded, as there isn’t a real incentive for them. At Fremont Bank, closing out a UCC is a standard step.
When it’s time to get a new loan or other financing, old UCC filings can fog things up. If Fremont Bank is your commercial lender, you can trust that your UCC filing will be closed out. If you’re new to business banking with us, we can help you see what filings need to be closed out.
2. Let’s talk about the matching principle.
Many business owners come in and say that they want a line of credit or a loan. It’s a great start, but we need to determine what they want to accomplish. You know your business and the industry. We want to learn more about what you need, so we can provide the right kind of product.
That’s the matching principle — match the financing with what you use it for.
If you want to buy equipment, a short-term line of credit may not be the right fit. A longer-term product would work better. If you need working capital, a line of credit may be the correct path.
Many of us got into commercial lending because we love the variety and the opportunity to help businesses do different things.
3. Let’s help debt work your business.
Going into debt is scary, and recovering from poorly managed or unnecessary debt can be tricky. However, debt can also be helpful, and even essential, for building and growing your business.
Healthy debt helps your business. A loan or line of credit can mean getting the extra money that lets you take advantage of an opportunity, bid on a new project, or succeed on a new project. That's why we're in business — to grow and make businesses more profitable and less stressful. It’s good for those businesses and for our communities.
It’s a benefit of working with a local bank, with bankers who live and work in the same community, and care about you and our community. When you work with a banker who knows you and your goal, they can help you examine the cost-benefit. If the math works, it can work for your business.
Don’t think of debt as an obligation; think of it as an opportunity.
4. Let’s determine whether there’s a next need.
Some business owners worry that taking out a new loan or line of credit immediately after paying off a previous one is a bad idea. That’s a misguided concern — if there’s a next need. If another piece of equipment helps win a job or secure a contract, then you need that piece of equipment.
There is value in finding efficiency — if you need a second machine in a second location. But avoid lazy assets, such as those pieces of equipment sitting unused. If you are financing a machine or piece of equipment, you should be using it and making money thanks to it. The last thing you want to do is buy a piece of equipment and have it sitting there doing nothing. Whatever you end up buying and whatever you end up financing needs to work hard for you.
That’s the number one calculus: Will this loan benefit you directly and make you more money than what you’re paying for the equipment?
My business is doing loans all the time! It’s our job to make sure a business can benefit from financing. When the businesses benefit, the community benefits.
Gene Anderson, Vice President, Commercial Underwriting
5. Let's keep talking.
We’ll check in with our clients, and continually assess and reassess their needs. We’ll call you, and when you call us, we’ll answer the phone. We want to make sure you’re happy and cared for.
It’s a real relationship. Even now, it’s funny that it always surprises people. That’s one of the benefits of working with a local bank.
That also means that, when you need immediate support, you can contact your banker, visit a branch, or call our call center in Livermore.
