Introduction to IncredibleBank

IncredibleBank, established in 1967 and headquartered in Wausau, Wisconsin, has evolved into a significant player in the small business lending landscape. With a history spanning over five decades, this financial institution has grown from its humble beginnings to become a trusted partner for entrepreneurs and small business owners across various industries.

Brief Overview of IncredibleBank

IncredibleBank operates as a division of River Valley Bank, a community-focused financial institution with a strong presence in Wisconsin and Michigan’s Upper Peninsula. As of early 2024, the bank boasts 17 locations and employs approximately 241 staff members. With total assets of around $1.96 billion and a loan portfolio of approximately $1.42 billion, IncredibleBank ranks as the 15th largest bank in Wisconsin and the 592nd largest in the United States.

The bank’s growth trajectory and financial stability demonstrate its commitment to serving its target market effectively. This expansion has allowed IncredibleBank to offer a wider range of financial products and services, particularly tailored to meet the unique needs of small businesses.

Key Features and Unique Selling Points

One of IncredibleBank’s standout features is its status as a Preferred Small Business Administration (SBA) lender. This designation allows the bank to streamline the SBA loan approval process, providing quicker access to funds for eligible businesses. This is a significant advantage for small business owners who often require timely financing to capitalize on growth opportunities or manage cash flow challenges.

IncredibleBank distinguishes itself through several key features:

1. Diverse Loan Products: The bank offers a variety of loan types tailored for small businesses, including term loans, lines of credit, and specialized SBA loans. This diversity allows businesses to choose financing options that best align with their specific needs and growth strategies.

2. Community Engagement: IncredibleBank demonstrates a strong commitment to community development. During recent evaluation periods, the bank originated over $322 million in small business loans, showcasing its dedication to fostering local economic growth.

3. Flexible Lending Practices: The bank has implemented innovative programs such as Payday Alternative Loans (PAL$) and Fresh Start loans. These initiatives cater to specific financial needs and demonstrate IncredibleBank’s flexible approach to lending, which can be particularly beneficial for businesses facing unique financial challenges.

4. Digital Banking Solutions: IncredibleBank has invested in robust online and mobile banking platforms, offering convenient digital tools for businesses to manage their finances efficiently.

Target Audience

IncredibleBank primarily targets small business owners across various industries, including retail, healthcare, construction, and technology. Its services are designed for businesses seeking capital for expansion, equipment purchases, or operational support. The bank’s focus on personalized service positions it as an appealing choice for entrepreneurs who may feel underserved by larger financial institutions.

The ideal IncredibleBank customer is likely a small to medium-sized business owner who values:

• Personalized banking relationships
• Access to diverse loan products, especially SBA loans
• Community-focused financial services
• Flexible lending options that can accommodate various business needs

By catering to this audience, IncredibleBank has carved out a niche in the competitive banking sector, offering tailored solutions that address the specific challenges faced by small businesses.

So What?

Understanding IncredibleBank’s corporate identity, including its history, ownership structure, and market positioning, is crucial for small business owners considering their financing options. The bank’s evolution from a local community bank to a significant player in small business lending demonstrates its commitment to growth and adaptation in a changing financial landscape.

For potential borrowers, IncredibleBank’s status as a Preferred SBA lender, combined with its diverse loan offerings and community focus, presents a compelling option in the small business financing market. However, it’s essential to consider how these features align with your specific business needs and goals.

As always, “check the market” and understand all your options before committing to one lender. IncredibleBank’s offerings may be attractive, but it’s important to compare them against other lenders to ensure you’re getting the best fit for your business.

Loan Products Offered by IncredibleBank

IncredibleBank offers a diverse array of loan products tailored to meet the varying needs of small businesses. Understanding these options is crucial for business owners seeking the right financial solution to support their growth and operations.

Types of Loans Offered

1. SBA Loans: As a Preferred SBA lender, IncredibleBank specializes in these government-backed loans. SBA loans can be used for various purposes, including working capital, debt refinancing, and business expansion. They typically offer lower down payments, longer repayment terms, and more flexible credit requirements compared to conventional loans.

2. Business Term Loans: These traditional loans provide a lump sum that is repaid over a fixed period with regular payments. Term loans from IncredibleBank can be used for a variety of purposes, such as equipment purchases, renovations, or expansion projects.

3. Business Lines of Credit: This flexible option allows businesses to draw funds as needed up to a predetermined limit. It’s particularly useful for managing cash flow fluctuations or taking advantage of unexpected opportunities.

4. Equipment Financing: IncredibleBank offers specific loans for purchasing business equipment, which can be an excellent option for businesses looking to upgrade their machinery or technology.

5. Payday Alternative Loans (PAL$): This unique offering is designed for individuals in financial distress, with loans capped at $3,000 and terms ranging from 6 to 12 months.

6. Fresh Start Loans: This program assists customers who struggle with overdrafts by providing unsecured loans to bring their accounts current.

Loan Amounts and Terms

The loan amounts and terms at IncredibleBank vary depending on the type of loan:

• SBA Loans: These can range from $5,000 to $5 million, with repayment terms extending up to 25 years for real estate purchases and 10 years for equipment or working capital.
• Business Term Loans: Typically range from $10,000 to $1 million, with terms up to 10 years.
• Lines of Credit: Credit limits are determined based on business revenue and creditworthiness, often ranging from $10,000 to $250,000.
• Equipment Financing: Loan amounts usually cover up to 80% of the equipment cost, with terms aligned to the expected life of the equipment.
• PAL$ Loans: Limited to $3,000 with repayment terms between 6 to 12 months.

These flexible amounts and terms cater to a wide range of business needs, from small operational expenses to significant capital investments.

Interest Rates and Fee Structure

Interest rates at IncredibleBank are competitive but can vary significantly based on the borrower’s credit profile, the type of loan, and current market conditions. Here’s a general overview:

• SBA Loans: Interest rates are typically based on the prime rate plus a margin, often resulting in rates between 6% to 8% APR.
• Business Term Loans: Rates can range from 5% to 15% APR, depending on creditworthiness and loan terms.
• Lines of Credit: These often have variable rates, typically starting around 7% APR.
• Equipment Financing: Rates are often competitive, ranging from 4% to 10% APR.

It’s important to note that while IncredibleBank has made efforts to reduce costs for consumers, including the elimination of certain fees like the $34 Return Item Fee and the $20 Sweep Fee for consumer accounts, businesses should be aware that fees can still apply for specific services. These may include origination fees, annual fees for lines of credit, and late payment fees.

Repayment Schedules

Repayment schedules at IncredibleBank are designed to accommodate different business cash flows:

• Term Loans and SBA Loans: These typically require monthly payments over the life of the loan.
• Lines of Credit: Often allow for interest-only payments during a draw period, followed by a repayment period with principal and interest.
• Equipment Financing: Usually involves fixed monthly payments over the term of the loan.
• PAL$ Loans: May require more frequent payments, potentially bi-weekly or monthly.

This variety in repayment options allows borrowers to select terms that best fit their financial situations and cash flow patterns.

Pros and Cons

Pros:

• Diverse Loan Options: IncredibleBank’s wide range of products caters to different business needs and stages of growth.
• SBA Lending Expertise: As a Preferred SBA lender, they can expedite approvals and provide favorable terms for these government-backed loans.
• Flexible Repayment Terms: Options like lines of credit allow businesses to manage cash flow effectively.
• Community Focus: The bank’s commitment to local businesses can translate to more personalized service and understanding of regional economic factors.

Cons:

• Interest Rates May Vary: Depending on creditworthiness, some borrowers may face higher interest rates compared to other lenders.
• Limited Amounts for Certain Products: Small dollar loans like PAL$ might not meet larger financing needs.
• Potential Fees: While some fees have been eliminated, others may still apply depending on the service used.
• Geographic Limitations: With physical branches primarily in Wisconsin and Michigan’s Upper Peninsula, businesses outside these areas may have limited access to in-person services.

Conclusion

IncredibleBank’s loan products present a compelling option for small business owners seeking financing solutions. With a variety of offerings tailored to different financial needs and flexible repayment options, it stands out in the lending landscape. The bank’s status as a Preferred SBA lender is particularly advantageous for businesses looking to leverage government-backed loans.

However, potential borrowers should carefully evaluate interest rates and fees relative to their financial situations before proceeding. It’s also crucial to consider how IncredibleBank’s products compare to other lenders in the market. For businesses considering long-term financing options, our detailed guide on term loans provides valuable insights.

Remember, the best loan product for your business depends on various factors, including your credit profile, business history, and specific funding needs. Always compare multiple options and consider seeking advice from a financial professional before making a decision.

Eligibility Requirements for IncredibleBank Loans

Understanding the eligibility criteria for IncredibleBank loans is crucial for small business owners considering this lender. These requirements help determine whether your business qualifies for their various loan products and can save you time in the application process.

Minimum Credit Score

IncredibleBank, like many lenders, considers the credit scores of both the business (if established) and the business owner. While specific minimum credit score requirements are not publicly disclosed, here’s what we can infer based on industry standards and available information:

• SBA Loans: Typically, a minimum credit score of 640-680 is required, though IncredibleBank may have some flexibility due to their Preferred Lender status.
• Business Term Loans and Lines of Credit: A credit score of 600 or above is generally preferred, but exceptions may be made based on other factors.
• Equipment Financing: Credit score requirements may be slightly lower, potentially around 580-600, as the equipment serves as collateral.

It’s important to note that while credit scores are a significant factor, they are not the sole determinant of loan approval. IncredibleBank also considers other aspects of your business’s financial health.

Time in Business

The time your business has been operating is another crucial eligibility factor:

• SBA Loans: Generally, businesses should have been operating for at least two years. However, startups may be considered for certain SBA programs like the SBA 7(a) loan.
• Business Term Loans and Lines of Credit: A minimum of one year in business is typically required, with two or more years preferred.
• Equipment Financing: Requirements may be more lenient, potentially accepting businesses with as little as six months of operation.

IncredibleBank’s focus on community development and support for local businesses suggests they may have some flexibility in this criterion, especially for well-prepared startups or businesses with strong growth potential.

Annual Revenue Requirements

While specific annual revenue thresholds are not publicly disclosed by IncredibleBank, we can estimate based on industry standards:

• SBA Loans: Typically, a minimum annual revenue of $100,000 to $150,000 is expected.
• Business Term Loans and Lines of Credit: Annual revenue requirements may start around $50,000 to $100,000, depending on the loan amount sought.
• Equipment Financing: Lower revenue thresholds may apply, potentially starting at $40,000 to $50,000 annually.

It’s crucial to remember that revenue requirements often correlate with the loan amount you’re seeking. Higher loan amounts generally require higher annual revenues to demonstrate repayment capacity.

Industry Restrictions

IncredibleBank serves a wide range of industries, but like most lenders, they may have restrictions on certain high-risk or regulated industries. While specific exclusions are not publicly listed, businesses in the following sectors may face additional scrutiny or limitations:

• Gambling or gaming
• Adult entertainment
• Cannabis or CBD-related businesses
• Certain types of financial services

It’s always best to check directly with IncredibleBank regarding any industry-specific restrictions or additional requirements for your particular business sector.

Geographic Limitations

IncredibleBank primarily serves businesses in Wisconsin and Michigan’s Upper Peninsula, where they have physical branch locations. However, their online banking capabilities and status as a Preferred SBA lender suggest they may be able to serve businesses in other areas, particularly for SBA loans.

For businesses outside their core geographic area, it’s advisable to contact IncredibleBank directly to confirm their ability to provide services in your location.

So What?

Understanding IncredibleBank’s eligibility requirements is crucial for several reasons:

1. Time-Saving: By knowing these criteria upfront, you can quickly assess whether your business is likely to qualify, saving time in the application process.

2. Preparation: If you fall short in certain areas, you can work on improving those aspects of your business before applying.

3. Choosing the Right Product: Different loan products may have varying eligibility requirements. Understanding these can help you focus on the most suitable options for your business.

4. Negotiation Power: If you exceed the minimum requirements, you may be in a stronger position to negotiate better terms or rates.

While these eligibility criteria provide a general guideline, it’s important to remember that IncredibleBank, like many community-focused banks, may take a holistic view of your business when considering loan applications. Factors such as your business plan, industry outlook, and personal banking relationship with IncredibleBank could also influence their decision.

If you’re unsure about your eligibility or have questions about specific requirements, it’s always best to reach out to IncredibleBank directly. They can provide the most up-to-date and accurate information regarding your business’s eligibility for their loan products.

For businesses exploring various financing options, our guide on funding tools and resources can provide additional insights into preparing for the loan application process.

IncredibleBank Application Process

Navigating the loan application process can be a critical step for small business owners seeking financing. Understanding IncredibleBank’s application procedures can help you prepare effectively and increase your chances of approval. Let’s break down the steps involved, required documents, typical timeline, and technology used in IncredibleBank’s application process.

Steps Involved

1. Initial Inquiry: The process typically begins with an initial inquiry, which can be made online, over the phone, or in person at one of IncredibleBank’s branches.

2. Pre-Qualification: IncredibleBank may offer a pre-qualification process, especially for their SBA loans. This involves a soft credit pull and basic information about your business to give you an idea of what you might qualify for.

3. Application Submission: If you decide to proceed, you’ll need to complete a formal application. This can often be done online through IncredibleBank’s secure portal.

4. Document Gathering and Submission: You’ll be required to submit various documents to support your application (more on this in the next section).

5. Underwriting Process: IncredibleBank’s underwriting team will review your application and supporting documents. They may reach out for additional information or clarification during this stage.

6. Loan Decision: After the underwriting process, IncredibleBank will make a decision on your loan application.

7. Loan Offer and Acceptance: If approved, you’ll receive a loan offer detailing the terms and conditions. You can then decide whether to accept.

8. Closing and Funding: Once you accept the offer, there will be a closing process where you sign the final documents. After this, the funds are typically disbursed to your business account.

Required Documents

IncredibleBank generally requires a comprehensive set of documents to evaluate your loan application. While the exact requirements may vary depending on the loan type and your business circumstances, here’s a general list of what you might need to prepare:

• Business and personal tax returns (typically for the last 2-3 years)
• Business financial statements (income statement, balance sheet, cash flow statement)
• Bank statements (usually for the last 3-6 months)
• Business plan or project proposal (especially for startups or expansion projects)
• Business licenses and registrations
• Legal documents (articles of incorporation, partnership agreements, etc.)
• Personal financial statement for all owners with 20% or more ownership
• Collateral information (for secured loans)
• Debt schedule (listing of all current business debts)

For SBA loans, additional documents may be required, such as SBA-specific forms and a detailed breakdown of how the loan funds will be used.

Typical Timeline from Application to Funding

The timeline for IncredibleBank’s loan process can vary depending on the loan type and the completeness of your application. However, here’s a general estimate:

• Pre-Qualification: This can often be completed within 24-48 hours.
• Full Application and Document Submission: This stage typically takes 1-2 weeks, depending on how quickly you can gather and submit all required documents.
• Underwriting and Decision: For most loans, this process takes about 1-2 weeks. However, for SBA loans, it might be faster due to IncredibleBank’s Preferred Lender status.
• Closing and Funding: Once approved, closing and funding usually take another 1-2 weeks.

In total, you might expect the process to take anywhere from 3-6 weeks from application to funding for most loans. SBA loans might be processed more quickly due to IncredibleBank’s Preferred Lender status, potentially taking 2-4 weeks.

Technology Used

IncredibleBank leverages modern technology to streamline its application process:

1. Online Application Portal: They offer a secure online platform where you can submit your application and upload documents.

2. Digital Document Submission: Most, if not all, required documents can be uploaded digitally, reducing paperwork and speeding up the process.

3. Online Banking Integration: If you’re an existing IncredibleBank customer, they may be able to access some of your financial information directly through their systems, potentially simplifying the application process.

4. Automated Underwriting Tools: While not publicly disclosed, it’s likely that IncredibleBank uses automated underwriting tools to assist in the initial evaluation of loan applications, helping to speed up the process.

5. Secure Communication Channels: They likely use encrypted email or a secure messaging system within their online banking platform to communicate with applicants about their loan status.

So What?

Understanding IncredibleBank’s application process is crucial for several reasons:

1. Preparation: Knowing what documents you need and what steps to expect allows you to prepare thoroughly, potentially speeding up the process.

2. Realistic Expectations: Understanding the typical timeline helps you plan your business activities around the expected funding date.

3. Leveraging Technology: Familiarity with IncredibleBank’s digital tools can help you navigate the application process more efficiently.

4. Improved Chances of Approval: By submitting a complete application with all required documents, you increase your chances of a smooth approval process.

Remember, while this overview provides a general idea of IncredibleBank’s application process, the specifics can vary based on your business’s unique situation and the type of loan you’re applying for. It’s always a good idea to communicate directly with an IncredibleBank representative to get the most accurate and up-to-date information for your specific case.

For businesses considering equipment upgrades, our guide on business equipment financing offers additional insights that might be relevant to your application process.

Advantages of Choosing IncredibleBank

When considering a lender for your small business needs, IncredibleBank offers several distinct advantages that may make it an attractive option. Let’s explore these benefits in detail to help you make an informed decision.

Speed of Funding

One of IncredibleBank’s notable strengths is its potential for quick funding, particularly for SBA loans:

1. Preferred SBA Lender Status: As a Preferred SBA lender, IncredibleBank can process and approve SBA loans faster than many other institutions. This status allows them to make credit decisions internally without waiting for SBA approval, which can significantly speed up the process.

2. Streamlined Application Process: IncredibleBank’s online application system and digital document submission capabilities contribute to a more efficient process, potentially reducing the time from application to funding.

3. Quick Decision Making: For non-SBA loans, IncredibleBank’s community bank structure may allow for faster decision-making compared to larger, more bureaucratic institutions.

While exact timelines can vary, businesses might expect funding in as little as 2-4 weeks for SBA loans, and potentially faster for other loan products.

Flexibility in Credit Requirements

IncredibleBank demonstrates some flexibility in its credit requirements, which can be advantageous for businesses that might not meet the strict criteria of larger banks:

1. Holistic Evaluation: IncredibleBank appears to take a comprehensive view of a business’s financial health, considering factors beyond just credit scores.

2. Alternative Loan Products: Offerings like the Payday Alternative Loans (PAL$) and Fresh Start loans indicate a willingness to work with borrowers who might have less-than-perfect credit histories.

3. Community Focus: As a community bank, IncredibleBank may have a better understanding of local economic conditions and may be more willing to work with local businesses facing temporary challenges.

Unique Features or Benefits

IncredibleBank offers several unique features that set it apart from other lenders:

1. Relationship Banking: IncredibleBank emphasizes building long-term relationships with its clients. This approach can lead to more personalized service and potentially better terms for loyal customers over time.

2. Comprehensive Business Services: Beyond lending, IncredibleBank offers a full suite of business banking services, including cash management tools, fraud protection, and mobile banking. This can be convenient for businesses looking to centralize their financial operations.

3. Community Development Focus: IncredibleBank’s commitment to community development, evidenced by its significant small business lending activity, suggests a genuine interest in supporting local economic growth.

4. Innovative Loan Products: The bank’s willingness to offer non-traditional products like PAL$ loans demonstrates an innovative approach to meeting diverse financial needs.

Potential for Building Business Credit

Working with IncredibleBank can potentially help businesses build or improve their credit profiles:

1. Reporting to Credit Bureaus: While not explicitly stated, it’s likely that IncredibleBank reports loan payments to major business credit bureaus, which can help businesses establish or improve their credit scores.

2. Graduated Lending: IncredibleBank’s diverse loan products allow businesses to start with smaller, more accessible loans and potentially graduate to larger financing options as they build their credit history.

3. Financial Guidance: The bank’s relationship-focused approach may include providing guidance on how to improve your business’s financial health and credit profile over time.

So What?

These advantages make IncredibleBank a compelling option for many small businesses, particularly those that:

• Need quick access to funds, especially through SBA loans
• May not meet the strict credit requirements of larger banks
• Value personalized service and a long-term banking relationship
• Are looking to build or improve their business credit
• Appreciate a lender with a strong community focus

However, it’s important to remember that the best lender for your business depends on your specific needs, financial situation, and long-term goals. While IncredibleBank offers many advantages, it’s always wise to compare options from multiple lenders before making a decision.

For businesses looking at alternative financing methods, our guide on revenue-based financing might provide additional insights into other options available in the market.

As always, “check the market” and understand all your options before committing to one lender. While IncredibleBank’s advantages are noteworthy, ensuring you have the best fit for your specific business needs is crucial for long-term financial success.

Potential Drawbacks of IncredibleBank

While IncredibleBank offers numerous advantages, it’s crucial to consider potential drawbacks to make an informed decision about your business financing. Here are some areas where IncredibleBank may present challenges or limitations for certain borrowers.

Potentially Higher Interest Rates

While IncredibleBank’s interest rates can be competitive, especially for SBA loans, there are scenarios where rates might be higher than expected:

1. Non-SBA Loans: For traditional business loans or lines of credit, IncredibleBank’s rates may be higher compared to larger national banks, especially for borrowers with less-than-perfect credit.

2. Risk-Based Pricing: Like many lenders, IncredibleBank likely uses risk-based pricing. This means that businesses perceived as higher risk (due to factors like lower credit scores or shorter time in business) may face higher interest rates.

3. Variable Rates: Some products, particularly lines of credit, may come with variable interest rates. While these can start low, they have the potential to increase over time, potentially increasing the cost of borrowing.

It’s important to carefully review and compare the Annual Percentage Rate (APR) of any loan offer from IncredibleBank with other options in the market.

Short Repayment Terms

For some loan products, IncredibleBank may offer shorter repayment terms compared to other lenders:

1. Term Loans: While SBA loans can have terms up to 25 years for real estate, other term loans might have shorter repayment periods, potentially 5-10 years.

2. Lines of Credit: These often come with annual renewal requirements and may have shorter overall terms compared to term loans.

3. Equipment Financing: Repayment terms are typically tied to the expected life of the equipment, which could result in shorter terms for certain types of assets.

Shorter repayment terms can mean higher monthly payments, which could strain cash flow for some businesses.

Frequency of Payments

IncredibleBank’s payment schedules might be more frequent than some businesses prefer:

1. Monthly Payments: Most loans likely require monthly payments, which is standard but may not align with all business cash flow cycles.

2. Potential for More Frequent Payments: Some products, like lines of credit or short-term loans, might require more frequent payments (bi-weekly or even weekly), which could be challenging for businesses with irregular income.

3. Automatic Withdrawals: IncredibleBank may require automatic payments, which can be convenient but might cause issues if there are cash flow fluctuations.

Personal Guarantee Requirements

Like many small business lenders, IncredibleBank likely requires personal guarantees for most of its loan products:

1. Standard Practice: Personal guarantees are common in small business lending but tie the business owner’s personal assets to the loan.

2. Multiple Guarantors: For businesses with multiple owners, IncredibleBank may require guarantees from all owners with a significant stake (typically 20% or more).

3. Impact on Personal Credit: Because of the personal guarantee, any issues with the business loan could negatively affect the guarantor’s personal credit.

This requirement increases the personal risk for business owners and may be a significant consideration for some borrowers.

Potential for Debt Cycles

While not unique to IncredibleBank, there are scenarios where borrowers could find themselves in challenging debt situations:

1. Lines of Credit: The revolving nature of credit lines can sometimes lead to a cycle of borrowing, especially if used for ongoing operational expenses rather than specific growth initiatives.

2. Short-Term Products: Products with shorter terms and higher payments could lead to a need for repeated borrowing if not managed carefully.

3. Collateral Requirements: Some loans may require collateral, which could put important business assets at risk if repayment becomes challenging.

It’s crucial for borrowers to have a clear repayment plan and to use borrowed funds strategically to avoid potential debt cycles.

So What?

Understanding these potential drawbacks is essential for several reasons:

1. Informed Decision-Making: By considering both the advantages and disadvantages, you can make a more balanced decision about whether IncredibleBank is the right lender for your needs.

2. Financial Planning: Awareness of these factors allows you to better plan for the financial impact of taking on a loan from IncredibleBank.

3. Negotiation Opportunities: Understanding potential drawbacks gives you points to discuss or negotiate with IncredibleBank when applying for a loan.

4. Alternative Consideration: These drawbacks might prompt you to explore other lending options that might better suit your business’s specific situation.

Remember, while these drawbacks are important to consider, their impact will vary depending on your business’s specific circumstances. What might be a significant drawback for one business could be a minor concern for another.

For businesses facing unique challenges or considering alternative financing options, our resources for small and medium-sized businesses might provide valuable insights into managing these potential drawbacks effectively.

As with any major financial decision, it’s advisable to consult with a financial advisor or accountant who can help you assess the impact of these factors on your specific business situation. They can provide personalized advice on whether the benefits of working with IncredibleBank outweigh these potential drawbacks for your particular case.

Comparison to Traditional Lenders

When considering IncredibleBank for your business financing needs, it’s crucial to understand how it stacks up against traditional lenders like large national banks or local credit unions. This comparison will help you make an informed decision based on your specific business needs and circumstances.

Speed of Funding

IncredibleBank:
– Generally faster, especially for SBA loans due to their Preferred Lender status
– Online application and digital document submission can expedite the process
– Potential for funding in 2-4 weeks for SBA loans, possibly faster for other products

Traditional Lenders:
– Often slower, with more bureaucratic processes
– SBA loans through non-preferred lenders can take 60-90 days
– Conventional loans might take 30-60 days from application to funding

IncredibleBank typically has an edge in funding speed, which can be crucial for businesses needing quick access to capital.

Eligibility Criteria

IncredibleBank:
– May be more flexible, especially for local businesses
– Considers factors beyond just credit scores and financials
– Offers alternative products for businesses with less-than-perfect credit

Traditional Lenders:
– Often have stricter eligibility criteria
– Typically require higher credit scores and longer time in business
– May have less flexibility for businesses not meeting all criteria

IncredibleBank’s potentially more flexible approach could be advantageous for newer businesses or those with less-than-perfect credit histories.

Interest Rates and Fees

IncredibleBank:
– Competitive rates for SBA loans
– Rates for conventional loans may be higher than large national banks
– Fees structure may include origination fees and annual fees for lines of credit

Traditional Lenders:
– Large banks often offer lower rates for conventional loans
– Credit unions typically offer competitive rates and lower fees
– National banks may have more standardized fee structures

While IncredibleBank’s rates are competitive, especially for SBA loans, traditional lenders might offer lower rates for conventional loans to highly qualified borrowers.

Loan Amounts

IncredibleBank:
– Offers a range of loan amounts, from small business loans to multi-million dollar SBA loans
– Maximum loan amounts may be lower than some large national banks

Traditional Lenders:
– Large national banks often have higher maximum loan amounts
– Local banks and credit unions may have lower lending limits

IncredibleBank’s loan amounts are suitable for most small to medium-sized businesses, but very large loans might be more readily available from major national banks.

Flexibility in Use of Funds

IncredibleBank:
– Offers various loan products for different purposes (working capital, equipment, real estate, etc.)
– May have more flexibility in approving loans for diverse business needs

Traditional Lenders:
– Often have strict guidelines on fund usage, especially for specific loan products
– May be less flexible in accommodating unique or non-standard business needs

IncredibleBank’s community bank approach might allow for more flexibility in how funds can be used, which could be beneficial for businesses with unique needs.

So What?

This comparison reveals several key points for business owners to consider:

1. Speed vs. Rates: If quick funding is crucial, IncredibleBank’s faster processing times, especially for SBA loans, could outweigh potentially lower rates from traditional lenders.

2. Flexibility vs. Standardization: IncredibleBank’s potentially more flexible approach to eligibility and fund usage might be advantageous for businesses that don’t fit the standard mold. However, highly qualified borrowers might benefit from the standardized products and potentially lower rates of large banks.

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