If you’re running a business in New England, you’ve likely heard of Northern Bank, even if you’ve only driven past a branch or heard about them while researching banks. Northern Bank’s running status as the number 1 mid-sized 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. Plus, we’ve gathered all of the top business loan alternatives for you to consider if you end up deciding that none of the 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.
The first of your Northern Bank business loans options are SBA 7(a) loans. Of all the SBA programs, the SBA 7(a) loan program offers the most versatile funding for small business 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.
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 the intended use of loan they can fund. If you decide to fund with one of these Northern Bank business loans, you’ll only be able to use the proceeds toward 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.
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.
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 repayment 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 kind of Northern Bank business loan your top option that they offer.
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 the Northern Bank business loans is the right fit for you, then it’s time to consider top alternatives.
Because most SBA loans will be the same within each program, the key differentiator from SBA lender to SBA lender will be the speed with which they’re able to fund qualifying applications. Unfortunately, because SBA loans involve multiple layers of approval, they often take multiple months to fully fund. That said, here at Fundera, we’re often able to connect qualifying customers with SBA lenders to get them funded within a month. So, if you’re looking for SBA funding, then we suggest you apply through a marketplace like ours that can package and oversee your loan application to help get you funded quicker.
Alternatively, if you’re looking for more accessible funding than Northern Bank business loans offer, then your best alternative will be Fundation. Fundation is an alternative lender that offers both business term loans and business lines of credit from $20,000 to $350,000 with repayment terms from one to four years with rates as low as 7.9%.
Plus, Fundation term loans and lines of credit will be much more accessible than their Northern Bank counterparts. To be eligible, you’ll just need to fulfill the minimum credentials that Fundation looks for:
If you end up qualifying for funding from Fundation, then you could access your capital in as little as a day.
Alternatively, if you specifically need funding to invest in commercial real estate—but you can’t qualify for a Northern Bank business loan for that use—then consider checking out crowdfunding platforms like RealtyShares and RealtyMogul. These platforms provide platforms for smaller-scale investors to provide you with portions of the capital you need to then invest in commercial real estate.
Finally, if you’re looking for the quickest, most accessible form of funding possible, then we suggest you consider Kabbage lines of credit over Northern Bank business loans. Kabbage provides lines of credit from $2,000 to $250,000 with repayment terms of six months or a year.
To be eligible, you’ll need to make sure you check off the following minimum credentials before you apply:
If you do fulfill these minimum requirements, then you can move onto Kabbage’s application, which is one of the easiest one the market. All you’ll have to do is sync your accounts—like your business bank account and your accounting software—and Kabbage will use that information for underwriting. If you qualify, then you could get your funding within that same day.
There you have it—all the ins and out on Northern Bank business loans and all of their top competitors. Now that you’ve got an idea of what Northern Bank is offering up 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 way too long to fund to even be useful for most fast-paced small businesses.
If you’re okay with waiting—and potentially being denied the funds you need—then Northern Bank business loans could very well be worth your time However, if you need funding fast, and you’re not pristinely qualified, then the four alternatives we’ve highlighted would serve your funding needs better.