Financial tips
Video: When and How to Get a Loan
Taking out a loan can be confusing and intimidating. This video can help make the process clearer and easier. Watch to learn when to get a loan, how to get a loan, and what to look for in a lender.
For more information on how to get a loan or to talk with one of Gateway Bank’s loan officers, contact us today.
In this video:
[0:25] What is a loan
[0:45] When to get a loan
[1:21] What to look for in a lender
[2:05] How to apply for a loan
[2:28] How long the review process takes
[2:45] What to expect during the closing process
[3:13] What’s next after closing
Other resources:
How Do Loans Work? An Overview of the Elements of a Loan: //gcbaz.com/news-and-resources/video-how-do-loans-work-an-overview-of-the-elements-of-a-loan/
Types of business loans: //gcbaz.com/business-banking/business-loans/
Types of personal loans: //gcbaz.com/personal-banking/loans/
An overview of the loan process: //gcbaz.com/loanprocess
Checklist of documents to submit with your loan application: //gcbaz.com/loanchecklist
Business loan application: gcbaz.com/businessloanapp
Transcript:
Don Thompson: Hello, I’m Don Thompson, and I’m the Chief Credit Officer here at Gateway Bank.
Jim LeCheminant: My name is Jim LeCheminant. I’m Vice President of Business Development for Gateway Bank.
James Christensen: My name is James Christensen. I’m the President and CEO of Gateway Bank. Today I’d like to talk to you about when to get a loan, how to get a loan, and how to choose a partner.
What’s the loan process like?
James Christensen: A loan is basically…you’re getting together with a banking partner that you choose, and set up a repayment schedule on a note that will help your business accomplish the goals that you’re setting out to.
Jim LeCheminant: Sometimes we try and deal with people and ask them if they really need a loan. We find out what they’re trying to accomplish and see if we can help.
When should I get a loan?
James Christensen: The right time to get a loan is when you’re in the strategic planning process with your business. If you’re going to need some equipment for the coming year, if you’re going to need to increase your line of credit to handle your growth.
Jim LeCheminant: They’re at that point where they don’t have the cash flow to keep it going and to grow to the next step. That’s when it’s time to come in and visit with us.
James Christensen: You’re really building your relationship with the bank, so I’ve already met you, I know you, I know what your plans are for the future. We kind of help the consulting process through there on the steps, and we have plenty of time to figure out how to help you accomplish all your goals.
What should I look for in a lender?
James Christensen: When you’re looking for a lender, I think you need to spend some time. I actually always recommend to folks to meet with at least two different banks.
Jim LeCheminant: You want a lender that’s going to work with you, that you can trust, that you can talk to, and that makes decisions locally or right inside the bank. Not some other state, not some other source that doesn’t know anything about your business or you personally.
James Christensen: You’re really looking for a culture fit and somebody that has worked with your type of business and understands what to look for. When we’ve worked with you all the way through the entire process, we’ve seen the good, the bad, and the ugly. I think just being able to talk to your banker and really look at your banker as your partner, it really is an integral piece of your business. It’s like an additional employee of your business.
How do I apply for a loan?
Don Thompson: We can provide a checklist of the documents that we’ll need in order to apply for various kind of loans, whether that’s a real estate loan or a business loan.
James Christensen: First of all, just putting the entire packets together, and along the way if there’s any questions that you have, pieces of information you don’t typically have readily available at your hands, we can help you put that together and answer any questions along the way.
How long does the review process take?
James Christensen: At Gateway, the review process is typically a lot faster since all the decisions are made locally. We have a team — between the lender, the credit analyst, and loan ops — that are working on that credit as soon as you have it in here, so typically we’re turning it from that full package and getting it to the committee within a week.
What should I expect during the closing process?
Don Thompson: The loan closing process is exciting from the standpoint that we’ve made the decision, and you’re approved. You’re going to be able to get the money you want to either grow your business or buy that piece of equipment or buy real estate.
James Christensen: We want to make sure you’re as comfortable as possible during the closing process, so we’re going to send the documents to you ahead of time to review and make sure that all the terms are as you expected so there’s no surprises at closing.
What’s next?
James Christensen: Gateway Bank has never been about the transaction.
Jim LeCheminant: There are a number of banks that sell off their loans. We don’t do that. We do what’s known as portfolio loans. We keep them when we work with that customer.
James Christensen: Once your loan is with us, your relationship is with us. We’re a partner in your business. It’s not a one-and-done, where we’ve closed the loan and you’re never going to see us again.
James Christensen: It’s really a lifetime relationship at the bank, so we’re going to call you occasionally. Typically there’s going to be some reporting you’re going to be providing us periodically, and we’ll call and ask questions. Or really, we just like to stop by periodically just to tour the business and see what happened with the loan proceeds and let you tell us what’s going on with your business today.
James Christensen: When you’re ready to develop the best banking relationship you’ve ever had, give us a phone call or check us out on our website.
Video: How Do Loans Work? An Overview of the Elements of a Loan
How do loans work? How are they structured? How can you get a lower interest rate? What should you watch out for? This video answers all of these questions about more.
Watch to see a simple breakdown of the different elements of a loan, plus what to pay attention to when you’re shopping for a lending partner and reviewing your loan documents.
For more information on how loans work or to talk with one of Gateway Bank’s loan officers, contact us today.
In this video:
[0:22] What is a loan, and how do loans work?
[0:58] What goes into a loan?
[2:20] What happens if I can’t make a loan payment?
[3:00] Tips for borrowers
Other resources:
When and How to Get a Loan: //gcbaz.com/news-and-resources/video-when-and-how-to-get-a-loan/
Types of business loans: //gcbaz.com/business-banking/business-loans/
Types of personal loans: //gcbaz.com/personal-banking/loans/
An overview of the loan process: //gcbaz.com/loanprocess
Checklist of documents to submit with your loan application: //gcbaz.com/loanchecklist
Business loan application: gcbaz.com/businessloanapp
Transcript:
Anthony Martinez: I’m Anthony Martinez. I’m a Vice President of Commercial Lending at Gateway Bank.
Jim LeCheminant: My name is Jim LeCheminant. I’m a Vice President of Business Development at Gateway Bank.
James Christensen: My name is James Christensen. I’m the President and CEO of Gateway Bank. Today, I’d like to talk to you about the different elements of a loan and how a loan works.
What is the loan process like?
James Christensen: Basically, a loan is when we give you money, and then you pay us back that money plus some interest.
Jim LeCheminant: You know, when people apply for a loan, it’s pretty scary, pretty confusing, but it really is exciting to be able to get a loan and get approved and watch your business, or as an individual, get what you need.
Anthony Martinez: Here at Gateway, we try to make this process as less frustrating and as easy as possible. It’s almost from a consultative standpoint, where we try to uncover their needs, match our loan products, and build a structure that will assist them in getting the financing they need, for the purpose that they need.
What are the basic elements of a loan?
James Christensen: There’s quite a few pieces on what goes into a loan. Really, the structure of a loan is one of the most important things. It’s one of the advantages Gateway has in that consultative approach.
Anthony Martinez: There are a lot of factors that go into a loan. We call those the terms of the loan. Anything from the length of the loan, interest rates, APR, collateral. It could be a fixed or variable. That just depends on the type of product that we’re looking at providing.
James Christensen: A lot of times, people say, “Well, another bank gave me two or three covenants. What’s that mean?” A covenant might be the debt-to-worth of your company. If you have $100,000 in debt and $50,000 in net worth, at that point you’re two-to-one times debt-to-worth.
James Christensen: The bank sometimes will set a limit on that and say, “The debt can’t be more than three times your net worth.” The one thing at Gateway is, if we do happen to have a covenant on the loan, we’re going to go through it with you, we’re going to show you the formula, we’re going to show you exactly what that looks like, and really work with you to determine, “Do those covenants really make sense?”
Jim LeCheminant: We look at the history. Usually it’s three years of financial statements for your business and your personal financial statement too. If it’s strong, you’re going to get a more lucrative rate, a lower rate. You’re probably going to get better terms on the length of the loan.
What happens if I can’t make a payment?
James Christensen: You know, we understand there’s ups and downs in all businesses. There’s good times, there’s bad times. Really, all’s we look for with our clients is to have an open dialogue. We’ve always been here, we’re always going to be here to make any adjustments we need to your loan, to have a change in terms that’ll fit whatever is coming up in your business.
James Christensen: We’re your partner. We’re not the enemy. We’re not the one that, you know, if you don’t make your payment we’re out of here, or we’re going to come take your business, or we’re going to come foreclose on your building. That’s not who we are. We are here to make you successful and help you make Arizona a better place to live.
Any tips for borrowers?
James Christensen: I would go out, and I would ask the lender or whoever I’m meeting from that team how long they’ve been at the bank. I think it’s okay to ask, “Is your bank for sale?” I think it’s okay to ask if you sell any of your loans. Really, just anything you’ve thought of banking-related that might cause you concern or be a pain point for you, feel free to ask that question. If they don’t answer them to your satisfaction, that’s not the right place to be.
Jim LeCheminant: It’s best to come in and talk to us, see what your needs are. Your needs and what we can do may not always match, and we may have another suggestion or two that may be even better for you.
James Christensen: A lot of banks really try to make this process overly complicated. In all honesty, it really isn’t. At Gateway Bank, we’re here to walk you through the process, and make sure that whatever you need, your goals for the business, whatever you’re trying to accomplish, we’re going to help you get from point A to point B. We want you to be successful, and we want you to understand what we’re doing, and we want to be part of your team.
James Christensen: When you’re shopping for a loan, in my opinion what matters most is the relationship with the bank, with the banker. Does the banker get excited about what you do? Are they interested in you? The bank’s investing in you. The bank’s investing in your company.
James Christensen: It’s one of those things that’s not always measurable. It’s feel. You know, is the banker as equally excited about my business as I am and helping me take it to the next level and succeed?
CDs vs. money market accounts: Which one is right for you?
Finding a safe place to store extra money can be nerve-racking, especially during uncertain financial times. Luckily, certificates of deposit and money market accounts can be good solutions for those looking to get a little return on their savings without sacrificing safety. These accounts seem similar at first glance, but there are some differences that are important to know about before investing. We’ll break down the details to make it easy to decide which one is right for you.