Posted by & filed under Business Finances.

At Kerndt Brothers Bank, we want to make sure you get exactly the right type of financing you need to grow your business. We’ve been helping people reach their goals for more than 150 years.

While most people know about our loans, others don’t know we also offer generous lines of credit. Whether you need credit for personal or business reasons, we’re here to answer your questions and assist you.

Let’s take a quick look at the differences between loans and lines of credit. For either type, we’ll request a copy of your credit report and make our determinations based on your credit history and score.

A loan is for a fixed amount of money to be paid back monthly over a fixed amount of time at a fixed percentage. Usually a loan is granted for a specific project or item. For example, you may need a new company car or wish to do some new construction. You approach us about borrowing money for that purpose. The closing cost for a loan usually begins at about two percent and goes up from there.

In contrast, a line of credit is much more flexible and differs in many important ways.

Lines of credit are often revolving and can be used in a variety of ways. Most people apply for credit lines before they’re actually needed, as a cushion and for cash-flow needs. You won’t always know your needs six months or a year or two ahead. That’s where lines of credit are so helpful.

These funds provide the freedom to make decisions based on both your business and personal goals. Unlike a loan, you pay for only the amount of money you’ve borrowed and accrued. The closing costs and interest rates on a line of credit are typically much lower than for loans.

The professionals at Kerndt Brothers Bank will discuss the best options for you and your business. We’ll look at your short- and long-term plans and help you decide which types of financing makes the most sense.

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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.