Business Loans

Helping You Reach Your Business Goals

Kerndt Brothers Bank has been helping Eastern Iowa businesses grow for more than 160 years. And we’re here to help you.

We know running a business is hard work. We started small and grew our company. People trusted us with their money; trusted us to always do the right thing.

Let our experienced business lenders help with all your financial goals. We’ll take the time to meet with you, listen to your needs, and then offer customized loans for your business.

Whether you’re just setting up shop, buying land, expanding your current location, hiring more employees, building a new facility, or establishing new business plans and strategies, we can help you realize your business dreams.

We want to see your business succeed because we learned long ago, and haven't forgotten successful customers are necessary to be a successful bank.

Our business loan representatives live and work in your community. We’re your trusted hometown financial lender. Our mission is to be a material benefit to the community and provide a safe place for all your funds. At Kerndt Brothers Bank, we provide expertise, resources, and personalized service every step of the way.

Among the many types of business loans, Kerndt Brothers Bank offers:

Revolving Operating Lines of Credit

Much like a company credit card, this pre-approved line of credit provides you with a reserve for unexpected expenses or gaps in cash flow. It gives you peace of mind. Most businesses use a line of credit for short term operating expenses. Our Kerndt Brothers Bank revolving line of credit allows you to borrow money when you need it and pay it back when you can. Effective management of this type of loan is also a great way to build credit.

Accounts Receivable Financing

This asset-financing helps provide liquidity to your business. You receive instant access to capital. Kerndt monitors your aged receivable totals and uses them as collateral for your loan. This allows you quick access to cash to help you run your business.

Short- and Long-Term Working Capital Loans

Sometimes companies run out of money—especially seasonal or cyclical businesses—yet still have many assets. If that describes you, a working capital loan may be the perfect choice. This loan will help you meet your operating costs until you’re in the black again. Kerndt Brothers Bank will provide flexibility and continuity for all your business needs.

Equipment Term Credit

Every business needs equipment to operate and succeed. From computers and printers to vehicles and tools, Kerndt Brothers Bank will help you refinance your current equipment or purchase new equipment. We want to help you grow your business. An equipment term credit loan is just one way we can help.

Commercial Real Estate Term Loans

Whether you wish to remodel or expand your current facility, purchase new land or build a new facility, you can count on the commercial lenders at Kerndt Brothers Bank to help you meet the real estate needs of your business.

U.S. Small Business Administration Loans

We focus on SBA’s 7a and 504 programs. These programs are designed to help small businesses borrow money for almost anything, from general expenses to financing fixed assets. Each type of loan has specific eligibility requirements and application guidelines. Talk to our experienced bankers and we’ll discuss which SBA program might be right for you.

What are banks looking for?

Sure, you’re charming, hard-working, and a snappy dresser. And you run one heck of a wonderful business. But how do you stack up against the 5 C’s? What are the 5 C’s, you ask? Well, they’re a guide for lenders—like those at Kerndt Brothers Bank—to see if you’re a good financial risk.

These 5 C words help assess your business creditworthiness. Using both qualitative and quantitative factors, the five C’s are a quick way for bankers to gauge if they should extend credit to your company. Lenders need to know if you’re more likely to pay them back or liable to default on a loan. The 5 C’s help them decide. So, in alphabetical order, here are the 5 C’s:


What is your capacity to repay a loan? A lender must determine if it makes sense to green light a loan for your business. While there are several ways to assess this capacity, the most common approach is to look at your traditional cash flow. This allows us to calculate your company’s debt service coverage ratio.

We look at a company’s net income plus non-cash expenses (i.e. depreciation). Then we examine your term interest expense and divide that by the fixed monthly debt obligations of your company. Taking into account a margin of error, we want this ratio to be 1.2 or higher.


Whenever you can put some money toward a purchase, it shows you have some skin in the game. For example, if you’d like to expand your business, having a sizeable down payment will likely help you secure money. The same goes for vehicle fleets or business renovations. If you pay a portion of the total, you may get a better loan package. Finally, when you’re willing to offer a down payment, it shows you’re serious about money. Many lenders will take that as a sign of your intention to repay the debt.


What do you own that’s valuable? That’s your collateral. It may be your building, your property, or your business contracts. Whatever your business assets, they’re an assurance to lenders that if you default on your loan, they can take ownership of your collateral. Often business loans are secured through other property. But collateral comes in many forms: cash, real estate, equipment, or inventory, to name a few. Banks look at this collateral, as well as any debt your business may owe, when making decisions about lending.


You’d like a loan, but how will you use that loan? If you’re borrowing for a specific purpose—construction on a new facility, purchase of manufacturing equipment, hiring new employees—lenders have a clear idea about your intentions. If, however, you’d like a revolving line of credit, a lender may be a bit more cautious when extending credit. In addition, financial institutions look at the market, current interest rates, and legislation when making lending decisions.

Credit History

What is your relationship with money? Your business credit reports show your character when it comes to debt. Credit reports—from Equifax, Dun and Bradstreet, and Experian— list your corporate financial history from the first time you borrowed money. These analytics show when you’ve paid and how much you’ve paid on every loan. In addition, these reports list any collections, liens, bankruptcies, and other judgments against your business.

The Fair Isaac Corporation (FICO) Small Business Scoring Service collects information about your company and assigns a credit score to you. This information helps lenders make more informed choices as they consider your loan application.

We hope these 5 C’s help explain how banks view potential borrowers. We believe in a 5th C: communication. Open communication is the key to all successful financial relationships.

We’d love to discuss lending with you. You can apply by calling or making an appointment to meet with one of our Kerndt Brothers Business Banking Specialists who can answer your questions or start your application.