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When you’re a business owner, there are a lot of “firsts” . . . first hire, first sale, first office, first company vehicle, and the list goes on and on.

At Kerndt Brothers Bank, we want to make sure you can afford every new first experience and purchase. We’ve been helping business owners across Iowa for 160 years. As your community bank, we’re committed to your success.

Whether you’re just beginning a new business or hope to expand, Kerndt Brothers Bank will help with all your financial needs.

When it comes to borrowing money, there are two distinct types of loans: secured loans and unsecured loans. The more you understand about each, the better decisions you can make about your financial future.

If you have poor credit history or are trying to rebuild your credit, a secured loan might be right for you.

It provides peace of mind for lenders because a secured loan is tied to a something you already own or assets you already possess. This collateral is the security you pledge as proof you’ll repay the loan. For example, the bank may ask you to list a car or property or stocks as collateral. If you default on the loan agreement, the lender can take possession of the item(s) you listed as collateral.

While this may sound risky, secured loans typically offer quite a few advantages, including lower interest rates, longer repayment terms, and higher borrowing amounts. If you need cash flow and intend to honor the loan agreement, a secured loan is a good bet for you.

Unsecured loans — things like credit cards and personal and student loans —have no strings attached. You needn’t offer any collateral. Rather, lenders take a risk and assume you can repay the loan based on your income or assets.

When considering an unsecured loan, lenders need to determine your creditworthiness. They may rate you based on character, capacity, capital and other factors.

However, because it is unsecured, this loan may come with a higher interest rate and a lower borrowing limit than a secured loan.

Trust the professionals at Kerndt Brothers Bank to answer all your questions. We want to make sure you get the best possible terms and loan for all your needs. Whenever you need financial advice, we’re here to help.

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The material provided on this website is for informational use only and is not intended for financial or investment advice. Kerndt Brothers Bank and/or its partners assume no liability for any loss or damage resulting from one's reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment management.