Chemung Canal Trust Company Small Business Loans Review
Chemung Canal Trust Company is a financial institution serving residents of New York and Pennsylvania with a variety of products and financial services, including small business loans and financing.
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Founded in 1833, Chemung Canal Trust Company has built its reputation as the oldest locally-owned and managed community bank in the state of New York. The trust company has assets of more than $1.7 billion and employs more than 370 individuals through its 28 branch locations.
Customers of Chemung Canal Trust Company have access to deposit accounts, loans and credit cards, and wealth management services on the personal side of the business. Small business owners may use the trust company for checking and savings, small business and commercial loans, and credit card services.
Chemung Canal Trust Company Small Business Loans
Small business loans through Chemung Canal Trust Company are available to business owners for up to $250,000, with total related credit of $400,000 or less.
The trust company offers various loan programs in partnership with the Small Business Administration which provides loans for working capital, construction, renovation or purchase of real estate, and equipment purchases to qualified borrowers. The trust company also allows financing for expansion, inventory purchases, debt consolidation, and business growth.
Financing may be in the form of a line of credit, an overdraft credit line, a term loan, or a commercial loan.
Getting a small business loan with Chemung Canal Trust Company requires small business owners to have a legal structure for their business, such as an LLC or S-Corp, and in some cases, a minimum number of years in business.
Chemung evaluates the creditworthiness of a business based on annual revenue, other outstanding business and personal debts, and the ability the business has to repay the financing over time. Small business owners should be prepared to present business financial records, tax returns, and details on other business assets when applying for a loan.
Basic Information: Rates, Terms, Fees, and Limits
Small business financing options through Chemung Canal Trust Company come in the following forms:
- Term Loans: Available for investing in office equipment, computer systems, vehicles, or machinery. These have fixed interest rates dependent on the business owner’s credit history and business financials, and a maximum seven-year repayment term.
- Business Lines of Credit: Flexible financing for working capital, accounts receivable, and inventory turnover. Lines of credit have variable interest rates that adjust daily and a three-year renewal period.
- Commercial Equity Line of Credit: For business owners with commercial or family properties under a business structure, a commercial equity line of credit offers flexible financing. Borrowers have a five-year draw period followed by a five-year renewal period. Commercial equity lines of credit have variable interest rates that adjust each day, and monthly payments are based on a 15-year amortization schedule.
The interest rates, repayment terms, and loan limits are based on the business owner’s financial track record.
Chemung Canal Trust Company offers several additional benefits to small business owners who have a loan or line of credit. The Business Banker service provides access to online banking, including account balances, transaction history, and the ability to transfer funds between Chemung Canal Trust Company accounts.
This financial institution also offers bill payment, fraud detection, direct deposit, and authorized user access. Small business loans with the trust company can be paid via automatic payments each month.
As a community financial institution, Chemung Canal Trust Company does not offer as many business financing options as other large, national banks or credit unions. Additionally, the loan limits on small business financing options may be lower than comparable offers from other small business loan lenders.
They also require several pieces of documentation from the business owner as part of the paper-based application. This includes a financial statement from the business owner, two years of tax returns for the business, and information about collateral that will be used to back the loan. To finalize a business loan or line of credit with Chemung Canal Trust Company, business owners must visit a branch location.
Chemung Canal Trust Company may offer valuable business financing options for small business owners who have collateral to pledge for the loan or line of credit, and strong financial statements and revenue of the business. However, the costs for a term loan or line of credit with the financial institution may be higher than other banks, and loan limits may be lower.
It is important for small business owners to review these features and caveats of business financing options before selecting which loan or line of credit works best for their business needs.
Author: Melissa Horton