Overview

The Business Term Loan from Old National Bank is a medium- to long-term lending solution crafted for small and mid-sized companies seeking capital for equipment purchases, facility expansion, working capital, acquisitions, or debt refinancing. Loans are offered with tailored amortization schedules and repayment options to align with cash flow cycles and business objectives.

Key Features

• Flexible Loan Amounts: Competitive financing sized to meet a wide range of business needs, from tens of thousands to several million, depending on credit profile and collateral.
• Customizable Terms: Terms typically range from 1 to 10 years, with the ability to structure longer amortizations where appropriate.
• Fixed or Variable Rates: Choose the interest structure that best suits your risk tolerance and planning preferences—fixed for predictability, variable for potential short-term savings.
• Amortization Options: Fully amortizing schedules or balloon payment structures can be arranged to match seasonal or project-specific cash flows.
• Collateral and Guarantees: Secured or unsecured options may be available based on loan size, business strength, and collateral offered; personal or corporate guarantees may be used to support approval.
• Dedicated Relationship Support: A specialized commercial lending team provides guidance throughout the loan lifecycle, from application to funding and beyond.

Benefits for Your Business

Old National Bank’s Business Term Loan empowers companies to take decisive steps toward strategic goals while maintaining manageable cash flow. Benefits include:

• Predictable Cash Management: Fixed monthly payments simplify budgeting and make long-term planning easier.
• Accelerated Growth: Access to capital enables timely investments in technology, staff, inventory, and facilities that accelerate revenue generation.
• Working Capital Relief: Stabilize operations during seasonal fluctuations or expand payroll and purchasing capacity without diluting ownership.
• Refinancing Flexibility: Consolidate higher-cost obligations into one affordable payment and improve your debt structure.
• Relationship Banking: Ongoing access to advisory services and potential future financing options as your business evolves.

Common Uses

Business Term Loans are suitable for a variety of corporate objectives, including but not limited to:

• Purchasing equipment, vehicles, or technology
• Financing commercial real estate improvements or expansions
• Acquisition financing for strategic growth
• Seasonal working capital support
• Refinancing existing debt to improve cash flow

Qualification Criteria

Approval is based on an assessment of the company’s creditworthiness, cash flow stability, collateral, and the owner’s track record. Typical factors considered include:

• Time in business and industry experience
• Historical and projected revenue and profitability
• Debt service coverage and cash flow adequacy
• Credit history of the business and principals
• Quality and value of collateral, when applicable

Small businesses and established middle-market firms alike can qualify when they present a clear business plan and demonstrate the ability to meet repayment obligations.

Required Documentation

To expedite underwriting and approval, prepare the following materials when applying:

• Recent business bank statements (typically last 3–12 months)
• Business and personal tax returns
• Profit and loss statements and balance sheets
• Cash flow projections or a business plan for new initiatives
• Details of collateral or assets offered as security
• Personal financial statements for principals, if requested

The lending team can provide a complete checklist tailored to your loan structure and business type.

Application and Approval Process

Old National Bank follows a streamlined process designed to reduce friction and deliver timely decisions:

1. Initial Consultation: Discuss objectives with a commercial lender to identify the optimal loan structure.
2. Preliminary Review: Submit basic financial information for an early assessment of eligibility and potential terms.
3. Underwriting: Provide requested documentation for a full credit evaluation, collateral review, and amortization modeling.
4. Decision and Offer: Receive a tailored loan proposal outlining terms, covenants, and repayment schedule.
5. Closing and Funding: Execute loan documents and receive funds, with ongoing support to ensure smooth repayment.

Timelines vary depending on loan complexity, but core product applications can often move from application to funding in a matter of weeks when all documentation is provided promptly.

Why Choose Old National Bank

Old National Bank combines regional strength with personalized service. Advantages include:

• Deep understanding of local markets and business cycles
• Dedicated commercial lenders who partner with you to align financing with strategy
• Flexible solutions tailored to industry-specific needs
• Reputation for responsible underwriting and transparent terms

Whether you are modernizing equipment, expanding capacity, or restructuring debt, Old National Bank seeks to provide practical, sustainable financing to help your business thrive.

Frequently Asked Questions

Can I prepay my Business Term Loan? Many term loans allow prepayment, though specific terms and any prepayment penalties will be detailed in your loan agreement.

Is collateral always required? Collateral requirements depend on loan size, risk profile, and business strength. Some smaller loans may be unsecured, while larger loans often require collateral.

How is the interest rate determined? Rates are based on market conditions, loan term, borrower creditworthiness, and collateral. Your lender will discuss available rate options during underwriting.