Standby Letters of Credit

• Guarantee by bank as payment for the beneficiary
• Saves money since a fee is paid instead of interest
• Interest accrues only if drawn upon
• Satisfies requirement set by vendor or other interested party
• Ability to purchase and sell goods that otherwise would need to be paid for in advance
• Reduces expenses since it costs less than borrowing funds

Documentary Letters of Credit

• Various options used in international commerce: transferable, partial shipment, revolving; back to back in which credit can be used as collateral, or red clause in which credit can be drawn against before shipping
• Increases cash flow since interest is only charged once draw is made
• Ability to purchase goods and services otherwise would need to pay for in advance
• Reduces expenses since it costs less than borrowing funds

Lines of Credit

• Cash management options with low monthly interest-only payments
• Ability to manage funds with floating interest rate
• Improved cash flow with low monthly payments
• Immediate accessibility of available funds
• Line availability increases as business and collateral grows

Draw Notes

• Flexibility of purpose and collateral when not all money is spent at once
• Reduced expense due to interest accruing only on balances outstanding
• Various payment options in which loan is repaid over period of time which is normally less than the lifetime of the collateral
• Multiple rate options to choose from
• Simplifies purchase of machinery and equipment

Term Loans

• Note payments are fixed for up to three years - occasionally 5 years
• Loan is repaid over period of time; normally less than the lifetime of the collateral
• Easy budgeting with equal monthly payments
• Smoothes cash flow for asset purchases
• Flexibility of rate structure

Commercial Real Estate — Construction Loan

• Low monthly payments
• Short term
• Choice of fixed or variable rate
• Convenient budgeting since no principal payment is required until completion, when rent payments are received
• Choice of rate type
• Ability to manage cash flow on regular basis

Commercial Real Estate — Mini-Perm

• Fixed or variable rate
• Reduced expenses due to low monthly payments with long amortization
• Secured by commercial real estate
• Notes and payments are fixed from 3 to 5 years
• Multiple rate options to choose from
• Improved cash flow on regular basis

SBA 7A

• Bank will more likely approve loan requests otherwise would not -- deal gets done
• Improved budgeting with long term fixed rate
• Fixed interest rate reduces risk of rising rates

SBA 504

• Reduced interest expense due to low loan rates
• Easy to budget monthly loan payments

Residential Mortgages

• Centralized service with same Business officer handling entire relationship
• Quick decision making
• Easy budgeting with multiple payment and rate options

Business Credit Cards

• Multiple credit limits for individual needs aggregated at company master level
• Credit line can be divided among many credit cards based on purchasing needs
• Easy access to account information online
• Payment can be made at First Business Bank or on-line
• Easy to manage employee expenses
• Ability to create reports with on-line service
• High level of client service-First Business Bank personnel answer questions and service accounts, not a national call center