Businesses of all types have a need to borrow money from time to time, whether to take advantage of an opportunity or to cover day-to-day needs during a period of slow sales.  Regardless of the reason, The RoyalBank can help address your need, and advance you the money needed to make your business succeed.

While each business loan tends to be unique, the general types of loans are:

• Credits, which are generally for expanding business activities
• Overdrafts, to cover a short-term deficit in the company’s checking account
• Guaranties, which ensure that the business is financially able to meet a specific commitment
• Letter of Credit, which guarantees a supplier that purchased goods will be paid for when received

Following are some pertinent facts and conditions:

CREDITS

The RoyalBank offers business loans for many purposes, in multiple currencies, to both large and  individual business owners.  In general, the most important factors are the level of profitability of your current business, and the projected profits from the uses of your loan.  A stable financial situation is particularly critical in obtaining a favorable decision.

General conditions:

• Maximum loan term of two years.
• The percentage of the project that The RoyalBank will finance will be determined after evaluation of the proposal.
• Revenues from the project must reasonably cover the periodic payments.
• The Bank will take a lien on real estate, equipment, or vehicles; or guarantees of qualified third parties, to ensure payment of the loan.
• Insurance on property must be maintained, with the Bank named as the beneficiary.

Required documents:

• Bookkeeping and other financial records from the past __ years.
• Guarantee documents.
• Business plan for the proposed project, including financial projections for at least the period of the loan.
• Other documents as determined by The RoyalBank.

Overdrafts

The RoyalBank offers Overdraft loans for qualified companies that have a negative deposit account balance for a few days.  Terms and rates vary by the situation, and the maximum term of an overdraft loan is one month.