Important Notice
Javascript must be enabled to view this website, please enable Javascript and reopen our website.
Skip to main content
  Financial Center Closing & Important News
Temporary Closing Read More

The Wood-Ridge Financial Center is currently closed. Please visit our nearest Financial Center located at 107 South Main Street, Lodi for your banking needs. We apologize for the temporary inconvenience.

Mariner’s Bank has joined Spencer Savings Bank.
We are excited to welcome Mariner’s customers and employees to the Spencer family. Read More

New Jersey Business Loans Through
Spencer Savings Bank

When your business needs fast, reliable access to working capital, Spencer Savings Bank is here to help. As your full-service local bank with nearly 300 team members, we have business lending specialists ready to help you secure the loan that’s right for you.

New Jersey business owners trust Spencer when they need it most. Whether for working capital or equipment purchases, your Spencer loan is a vehicle to move your business forward.

Business Loan Types Offered by Spencer Savings Bank

Spencer offers the following products up to $300,000 to entities that are legally formed to do business in the State of New Jersey or to individuals for business purposes.

 

Inquire Now

Local New Jersey Business Lending Specialists

Relationship banking at its finest is our commitment to you. In all of our lending products and services, you will find a commitment to customer experience. Our lending specialists have put together the following questions and answers to help business owners determine what Spencer loan solution is best for them. By taking the time to understand your lending needs, we become partners in your financial success.

What is a business line of credit?

A small business line of credit is a flexible loan that provides working capital to business owners for a defined amount of money that can be accessed as needed and repaid either immediately or over time.

It is typically known as a resource for covering costs such as payroll expenses, unforeseen emergencies, or to explore new opportunities with the security of knowing you can afford them.

Spencer Savings Bank offers two different lines of credit:

BusinessEdge® Express Line of Credit: This loan comes with a 12-month term and a variable rate, based on the Prime Rate plus a spread. After, the credit limit is established, funds can be used for a variety of purposes and interest-only payments are charged. As the outstanding balance is repaid, those funds become available again. There is an annual clean-up requirement if the borrower elects to renew the loan at the end of the term. There is no annual renewal fee. For more information or to apply for a BusinessEdge® Express Line of Credit please feel free to call 201-703-3800.

BusinessEdge® Revolving Line of Credit: This loan comes with a 3-year term. The rate is variable, based on the Prime Rate plus a spread. Once the account is open, the borrower is able to use, repay and reuse the available balance at their discretion. The credit limit may be used repeatedly as long as you do not exceed the maximum. Principal and interest payments are charged and there is no annual clean-up requirement. For more information or to apply for a BusinessEdge® Revolving Line of Credit, please feel free to call 201-703-3800.

What is the difference in an annual line of credit and a revolving line of credit?

An annual line of credit and a revolving line of credit (LOC) are two types of financing arrangements available to both business and personal clients. Both revolving and annual lines of credit provide the borrower with purchase flexibility and payment flexibility. These funds can be used at the borrower’s discretion just like a flexible, open-ended loan. While these two facilities have some similarities, they are inherently different. An annual line of credit can be used up to a certain credit limit, paid down, and remains open until such time that the lender or borrower closes the account. A revolving line of credit, on the other hand, is a one-time arrangement for a 3-year period such that when the period ends, the lender closes the account, and the existing balance is due.

What is a business term loan?

A small business term loan provides a lump sum of capital upfront. You will then pay back the loan in full at fixed intervals for the life (or term) of the loan. The term refers to the length of time you have to repay the entire sum of the loan. Spencer offers 12 – 60 months term loans. Term loans are like a home mortgage, school loans, or vehicle financing. A term loan is a great option to get the funds needed for debt consolidation or equipment purchases.

What is a cash reserve?

A cash reserve is a line of credit which is linked to your business checking account with the intent to protect customers from unforeseen circumstances. For example, if a business does not have enough money in their checking account to cover a written check or charge, it will automatically pull from your cash reserve and put it in the business’s account to cover the expense. Spencer’s BusinessEdge® Express Cash Reserve does not charge the business owner each time money is pulled. Cash reserves eliminate the business from incurring debt from a credit card or unexpected costs.

New Jersey Business Loans Frequently Asked Questions

Business Loan Requirement Info and FAQs

A small business loan provides capital to business owners that is not available in liquid cash. Some common reasons businesses apply for a small business loan include the need for additional staff, adding or upgrading office equipment, or expanding to a larger space.

Determining the best type of loan for your business comes down to a few aspects:

Use of Proceeds:

  • A small business line of credit is generally used for working capital where a small business loan can be used to purchase fixed assets, debt consolidation, inventory or capital, and leaseholder improvements.

Terms:

  • A small business line of credit is a revolving account that let borrowers draw, repay, and redraw from available funds whereas a small business loan is a lump sum of money that is repaid over a fixed term.

To choose the small business financing that is right for your business, the following qualifications are needed to get started.

  • Business operations 2 years or more
  • Middle credit score of at least one guarantor must be 700+

Before talking to your loan specialist there are a few important factors to know:

  • How much money do you need to borrow?
  • When do you need the money?
  • What do you need the money for?

Knowing your situation narrows down what types of financing and allows us to offer you the financing that best fits your situation. Spencer’s team of loan specialists are always available to help talk you through your options and point you in the best direction. With expedited funding and rapid decision making, Spencer Savings Bank is one of the premier small business lenders in New Jersey.

Each loan has different requirements. For small business loans under $75,000, Spencer typically requires:

  • 2 years or more of business operations
  • Middle credit score of at least one guarantor of 700+
  • Credit Application

For small business loans over $75,000, Spencer will also need the following items:

  • Personal Financial Statement
  • Two Years Signed Business Returns
  • One Year Signed Personal Returns (all guarantor)
  • Debt Schedule
  • 2 months business bank statements
  • Insurance certificate
  • Invoice (equipment loans)

The best way to get a small business loan is to analyze your cash flow, annual revenue, credit score and to develop a clear plan and explanation of where the loan dollars will be applied, and how long it will take you to pay it back.

Some documentation that is helpful when applying for a loan for a startup business include:

  • A well-written business plan
  • Collateral
  • Clean personal credit

For startups, traditional small-business loans may not be the best way to go. Business credit cards and personal loans or grants could be alternate options. Our specialists will gladly help you in your journey to launch your business.

After speaking with one of our business lending specialists, you will be able to see what loan(s) will be available to you. We do highly suggest ordering a credit report to see exactly where your credit stands. If you are close to being in good standing, it is worth trying to increase your score, then applying for financing.

Simply put – relationships. Online lenders may have representatives, but Spencer Savings Bank is in New Jersey and our branch representatives are available to meet with you and will be there to help your business grow. A traditional bank generally offers lower rates, and our lending process is designed to make sure you are in the best standing to succeed. That is why at Spencer Savings Bank you are more than just a customer, you are a partner. As you grow, so do we.

Business Line of Credit Requirement Info and FAQs

Lines of credit allow the business owner to keep reusing and repaying as often as needed, as long as payments are made on time and don’t exceed the allotted credit limit. Business owners receive funds from a bank in a line of credit, then pay back to replenish the original credit limit.

Business lines of credit with lower credit limits are typically unsecured, which means collateral such as real estate or inventory is not required. However, if the line of credit is secured, it is usually backed by collateral like inventory or accounts receivable.

Spencer Savings Bank will give your small business access to a specific amount of financing set by a credit limit, which you can draw from for business expenses, as needed. A small business line of credit is subject to credit review and annual renewal.

A business line of credit does not incur any interest until it is drawn upon. Business owners will apply for a line of credit as an added safety net in case unforeseen circumstances appear for their business. In the event you need equipment repairs, inventory, building maintenance, or temporary cash, a line of credit is a great resource.

Spencer Savings Bank offers two types of lines of credit:

BusinessEdge® Express Line of Credit: This loan comes with a 12-month term and a variable rate, based on the Prime Rate plus a spread. After, the credit limit is established, funds can be used for a variety of purposes and interest-only payments are charged. As the outstanding balance is repaid, those funds become available again. There is an annual clean-up requirement if the borrower elects to renew the loan at the end of the term. There is no annual renewal fee.

BusinessEdge® Express Revolving Line of Credit: This loan comes with a 3-year term. The rate is variable, based on the Prime Rate plus a spread. Once the account is open, the borrower is able to use, repay and reuse the available balance at their discretion. The credit limit may be used repeatedly as long as you do not exceed the maximum. Principal and interest payments are charged and there is no annual clean-up requirement.

A secured business line of credit requires the borrower to have collateral. This means the applicant must provide security to Spencer Savings Bank by including property or equipment as collateral for the value of the credit to reduce the risk the bank is taking.

An unsecured business line of credit does not require specific collateral. Unsecured credit lines can come with higher interest rates.

The cost of a small business line of credit is relative to the amount a business applies for and the interest associated with the loan.

A solid guide to qualify for a business line of credit is to have strong revenue, a few years of business operations, and collateral.

Documentation you should have ready includes personal and business tax returns, bank account information, profit-and-loss statements, and a balance sheet.

At a minimum, you will need at least 24 months of business operations, $300,000 in annual revenue, and a 700 credit score to qualify for a small business line of credit.

A small business line of credit is a flexible loan that provides working capital to business owners for a defined amount of money that can be accessed as needed and repaid either immediately or over time. It is typically known as a resource for covering costs such as payroll expenses, unforeseen emergencies, or to explore new opportunities with the security of knowing you can afford it. They usually also offer higher limits, lower rates and do not have annual fees like most small business credit cards.

On the other hand, a small business credit card is very similar to a personal credit card. You use your personal credit to get qualified and if you pay off the balance in full every statement period you can avoid interest charges. Also, most small business credit cards offer rewards points, so you can get rewarded for your everyday purchases. However, most small business credit cards come with some type of annual fee, they have higher interest rates, and will generally have a credit limit substantially less than the typical small business line of credit.

Business Term Loan Requirement Info and FAQs

Spencer Savings Bank offers 12-60 months term loans.

Term loans are available to assist business owners with improving their company. Every business is going to use a term loan differently. Determining the duration of the term loan is dependent on the size, the company’s cash flow, and ultimately, where the loan dollars are going to be applied. If a business is taking out a loan to purchase additional inventory that will sell quickly, a short-term loan may be best. If the business owner needs to secure a loan to purchase equipment or additional space that will take time to return, a longer-term loan would be best.

Whether it is a short-term or long-term, these loans are intended to make business growth possible. To determine the term best for you, Spencer suggests meeting with one of our loan officers to talk through various options.

Proof of cash flow is a key factor of the term loan application and approval process. Startups and new businesses generally will not have enough historical data when applying for a term loan. One to two years of financial records is typically the ideal time to include in a term loan application.

A poor credit score will hinder an approval for a term loan. Low credit score means high-interest rates in most cases. Personal and business credit scores are taken into account when applying for a business loan.

To apply for a term loan, Spencer Savings Bank requires:

  • 2 years or more of business operations
  • Middle credit score of at least one guarantor of 700+
  • Credit Application
  • Invoice (equipment loans)

For small business loans over $75,000, Spencer will also need the following items:

  • Personal Financial Statement
  • Two Years Signed Business Returns
  • One Year Signed Personal Returns (all guarantor)
  • Debt Schedule
  • 2 months business bank statements
  • Insurance certificate
  • Invoice (equipment loans)

Contact Us Today

Richard Vaill
VP & Business Development Officer Team Leader
rvaill@spencersavings.com
1-973-699-5616