Northern Bank’s running status as the number one midsize bank in New England makes them a viable option for any of your business banking needs—especially if you need a business loan.
We’ve compiled a guide to the Northern Bank business loans available for you to choose from so you can decide whether or not any of them are right for your business. Their loan products include:
- SBA 7(a) loans
- SBA 504/CDC loans
- Commercial real estate loans
- Term loans
- Lines of credit
Plus, we’ve gathered top business loan alternatives for you to consider if you end up deciding that no Northern Bank business loans are the right fit for you.
Let’s dive into all the details on Northern Bank business loans to see if any of them offer what your business needs.
Northern Bank Business Loan Options
SBA 7(a) Loans
The first of your Northern Bank business loan options is SBA 7(a) loans. Of all the SBA programs, the SBA 7(a) loan program offers the most versatile funding for small businesses and, as a result, is the most popular SBA program.
Northern Bank offers SBA 7(a) loans ranging in size from $25,000 to $5 million. And this form of SBA funding can be put toward pretty much any business expense you might need to finance. From an expense as general as working capital to one as specific as purchasing equipment—and pretty much anything in between—the proceeds of an SBA 7(a) loan can likely address whatever costs your business faces.
SBA 504/CDC Loans
Alternatively, if you’re looking for larger amounts of funding with longer repayment terms for a big-ticket purchase, then SBA 504/CDC loans might be a better option for you. This form of Northern Bank business loan can come in amounts ranging from $65,000 all the way up to $13 million, with repayment terms as long as 25 years.
SBA 504/CDC loans will be more restrictive in how you can use the proceeds. If you decide to fund with one of these Northern Bank business loans, you’ll only be able to use the funds for commercial real estate, construction, equipment, or large fixtures. Keep in mind: You’ll have to come to the table with a down payment of at least 10% of your project value, so you’ll need to make sure your business has that cash on hand to be eligible.
Commercial Real Estate Loans
Northern Bank business loans can also come in the form commercial real estate loans not backed by the SBA. Northern Bank doesn’t readily provide much information on their non-SBA commercial real estate loans.
That said, if you’re able to qualify for traditional bank loans for commercial real estate, they offer pretty stellar rates, which typically range from 5% to 7%. To qualify for most traditional commercial real estate loans, though, you’ll need to come to the table with excellent credit, top-notch collateral, and a solid DSCR, among many other credentials.
If you’re looking for more straightforward funding, then consider the traditional business term loans that Northern Bank offers. Again, their website doesn’t provide much solid information on this kind of Northern Bank business loan. Nonetheless, as a general rule, small business loans from banks typically come with ideal terms if you’re able to qualify for them—but, again, that is a big if.
Only the most qualified businesses can qualify for bank loans, and odds are that the same applies for Northern Bank business loans that aren’t backed by the SBA.
Lines of Credit
Finally, Northern Bank also offers business lines of credit for any sustained working capital needs your business might have. Business lines of credit offer a pool of funds from which your business can draw as needed and repay, plus interest, over an agreed-upon term.
Choosing to fund with a business line of credit will allow you to access affordable funds for your current needs, but will also set you up for easy access to funding in the future. If you anticipate needing more working capital—but only want to apply for it once—consider this type of Northern Bank business loan your top option.
Alternatives to Northern Bank Business Loans
Now that you’re familiar with the five types of Northern Bank business loans, it’s time to start thinking about where they fall on your list of possible funding options. If you’re not completely convinced that one of these loans is the right fit for you, then it’s time to consider top alternatives.
The Bottom Line
There you have it—all the ins and out on Northern Bank business loans and all of their top competitors. Now that you have an idea of what Northern Bank offers in the form of small business loans, you’re familiar with the pros and cons of most small business bank loans: They offer up ideal terms, but they’re only available to the most qualified minority of small business owners. Plus, they often take a long time to fund, which can be problematic for fast-paced small businesses.
If you have the time and the credentials, then Northern Bank business loans could very well be worth your time However, if you need funding fast, and you’re not perfectly qualified, then the four alternatives we’ve highlighted may serve your funding needs better.