Commercial Loans and Lines of Credit
Our regional commercial lending team offers a range of commercial financing options along with competitive rates to businesses throughout Pennsylvania and surrounding states. As an independent community bank, decisions are made locally and quickly to better serve you and your business.
Commercial Borrowing Options
Choose Mid Penn Bank for a commercial business loan or line of credit:
- Commercial Loan – If you are opening the doors to a new business or considering the expansion of a current business, a commercial loan from Mid Penn Bank will help you pay for inventory, leasing, property, and more. Contact us to find out what financing options you have.
- Commercial Line of Credit – A pre-approved commercial line of credit offers you a flexible, revolving type of credit. You can borrow money — up to your credit limit — as often as you like and for a variety of purposes. Lines of credit are approved for a 12-month period and are reviewed for renewal each subsequent 12 months. Find out more about our commercial lines of credit today.
- Letters of Credit – In the course of business, a customer may be required to give an assurance to a supplier or other party for a particular transaction. Mid Penn Bank can issue a letter of credit, which, on behalf of the customer, authorizes the entity receiving the letter to draw on a specified sum within a certain period of time. Learn more about letters of credit by contacting us today.
Business Lines vs. Loans
Business lines and commercial loans are types of lender financing that can improve your business’s cash flow.
A business line of credit is conceptually similar to a credit card. Your business applies for a line of credit and receives approval for a certain amount. Your business accumulates debt as it spends toward its credit limit. The available credit replenishes as you repay your outstanding balance. A business line of credit’s interest rate is often variable, fluctuating over time.
Business loans provide a lump sum that your company will repay at a fixed monthly rate plus interest. We set fixed commercial loan interest rates at the time of approval. Payments are due immediately even if your business is yet to use the money.
Common Uses of Business Lines of Credits
One advantage of a line of credit is that your business will have the flexibility to use it for nearly any expense. However, credit line interest rates are higher than loan interest rates, so it’s best to use your line of credit for short-term expenses. Your company can use its business line of credit to:
- Replenish your inventory
- Upgrade or repair equipment
- Cover off-season expenses
- Expand payroll during demand spikes
- Manage unexpected expenses
Lines of Credit Features and Benefits
A commercial credit line from Mid Penn Bank can open new opportunities for your company. Our commercial lines of credit offer numerous advantageous features that will empower your business to improve its capabilities and qualify for larger loans in the future:
- Low credit minimums
- Option for either secured or unsecured credit
- Interest-only payment plans during the draw period
- Low monthly payments with opportunities to pay more when interest rates drop
- Freedom to use your credit line toward any business expense
How to Apply
Mid Penn Bank makes it easy to obtain commercial loans, commercial lines of credit and letters of credit. We’ll collect your business’s financial information to establish the loan amount or credit limit. Once approved we will guide you through the closing process.
Apply for a loan or line of credit by contacting our commercial lending team today.
Get Started and Experience The Mid Penn Bank Difference Today
At Mid Penn Bank, we’re more than a commercial lender — we’re dedicated to being a partner in your business’s success. Your local team is committed to understanding your business and its ongoing needs.
To get started, set up an appointment with one of our local lenders today.