Unlike residential loans, the terms of commercial loans typically range from five years to 20 years, and the amortization period is often longer than the term of the loan. For example, a commercial loan for a term of seven years may have an amortization period of 30 years to reduce payment levels and support cash flow of the business.
Rates are fluid, but typically commercial loan pricing is based on a margin over a Wall Street Journal Prime or a comparable index. The actual interest rate you secure on a loan depends on the type of loan you choose, your qualifications as a borrower, and the type of building or project you're financing. Your lender will work with you to get the best rate possible for your specific situation.
We typically look for the “Five Cs” of credit -- capacity, collateral, capital, character and sensitivity to market conditions.
Ultimately, even though all five "Cs" are important, Osgood Bank is a cash flow lender. That means we look to the capacity or cash flow of your business or farm as the primary repayment source for the money we lend you. Simply put, is your company able to repay the amount borrowed?
We will evaluate your borrowing history, existing credit relations, and projections for future financial performance as we review requests for approval.
Yes. For all loans based in our local footprint (Darke, Shelby, Auglaize, Mercer and Logan counties) all credit decisions are made quickly by bankers that live and work in our communities.
For loans outside our area, we have processes that allow us to provide credit decisions extremely quickly after receiving a completed application package.