Compass Bank Small Business Loan Review
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Compass Bank is a large company that offers many kinds of financial products, including small business loans. Their loan options include fixed rates, adjustable rates, commercial real estate, renovation and construction loans as well as lines of credit for short term expenses. Each has its own characteristics but they are all subject to evaluation in relation to your own business’ financial situation.
Understanding Your Loan Options
Compass Bank encourages prospective clients to take advantage of discounts, purchase inventory, improve liquidity, or meet short-term cash requirements with their flexible, easy-to-access revolving line of credit. With three line of credit options available to clients, they can choose from fixed rate secured and unsecured loans, variable rates tied to the bank’s prime rate and checking/online banking credit lines, all requiring varying degrees of creditworthiness.
Compass’s business loans guaranteed with real estate as security have fairly generous terms. Such a loan allows for the purchase or refinance of owner-occupied commercial real estate, facilities expansion, working capital, or equipment purchases with a mortgage loan secured by commercial property, with no balloon payments and up to 85% Loan to Value (LTV) financing for owner-occupied commercial property. One of their more unique loan programs is their real estate secured loan for non-owner occupied commercial property, with up to 70% LTV financing, with both fixed and variable loans available.
Speed of Implementation and Loan Duration
With lower down payments and longer terms, a Small Business Administration (SBA) loan – guaranteed in part by the U.S. government – can help small businesses get off the ground. Named a “National Preferred Lender” by the SBA, this allows Compass to complete a great many of the loan’s processes without achieving prior approval, because their inhouse accounting measures have justified such a classification. They are the sole and direct provider of funds, so there are no layers of external underwriters or reviewers to wait for or to please.
Aside from the offer of short term capital access to funds via check, Online Banking, telephone transfer, or in a branch, the bank also offers longer business term loans that are custom designed to provide competitive low fixed rates, 5-year terms for all, up to 10 for healthcare professionals, with secured and unsecured options available.
Fine Print and Final Thoughts
The SBA's backing allows Compass to provide financing to businesses which might not otherwise qualify for conventional bank financing. The process takes a little longer and is a little more paper intensive than the bank proper, but SBA loans enjoy much more economical terms and standards, making Compass an excellent choice for many small businesses.
Anne is a Senior Author for SBL. She began her career as an independent consultant for local businesses after graduating with a BA in Management. Since that time, she’s expanded to writing as well as consulting to spread helpful knowledge to small business owners across the country.