How fast will I get a credit decision?
Once DCU has received your QuickApp, a representative will call you within 1 business day to discuss your request. Once a complete package is received, for loans under $500,000 a decision will be made generally within 3-6 business days.
If your request is over $500,000, a seasoned DCU commercial lender will call you within 1 business day to discuss your request and, in most cases, come out to visit you. Because of the complexity of larger business loans, approvals can take from 10 days to 40 days. DCU intends to get back to you as quickly as possible with our decision.
How will DCU determine my interest rate and annual fee?
Every application is analyzed utilizing several important variables including, among other factors, personal and business credit history, the business owner's industry experience, the company's years in business, and an assessment of the business's operations, cash flow, and financial strength. Based on this information, interest rates are generally established within a range from Prime plus 1% to Prime plus 5%. For 5-year fixed-rate loans, DCU uses the 5-year U.S. Treasury Bill yield plus 2.5% to 5%.
What collateral will be required?
Credit Union regulations require Business Loans to be adequately secured. To provide the most flexibility and minimize paperwork, the Business Loan will be at a minimum secured by a first security interest in the business assets of the borrower (except vehicles). In certain cases Equity Mortgages on real estate may be required. Commercial Mortgages will require a first mortgage on the real estate. To ask a specific question about collateral required, please contact the Information Center at 508.263.6700, option 4.
Will my personal guarantee be required?
Yes. Research shows that in almost all small businesses, the owner is the main ingredient that keeps the business going. And, the business exists mainly due to his or her direct influence, thus his or her continued commitment in the form of a personal guarantee is a necessary component of extending financing to small businesses.
What are the costs associated with closing a small business loan?
Costs vary upon the type and size of the loan. All loans generally have points ranging from 1/2% to 3%. Depending on the type of loan the closing cost can range from 1% to 3% of the loan amount. Also there may be prepaid interest or taxes. You may have costs for your attorney if he or she represents you.
Some of the closing costs can include an appraisal, an online environmental search, our attorney fees, recording charges, UCC search, and application fees.
Will DCU give me a loan to help start my business?
Does DCU offer business credit cards?
Yes, we have a Business Platinum Visa®.
Will I be able to see my loan on Online Banking?
Yes. You will also be able to access your loans by phone through Easy Touch Telephone Teller.
Can I fax the application?
Yes. We will be happy to accept the Quick App by fax. Instructions are included with the form.
What if I have an unusual request or a request that does not fit the parameters DCU describes here?
We will be happy to discuss your particular needs with you. Even though we may not be able to provide you with financing at this time, we may be able to give you some direction. Please call 508.804.9188 with any questions.
Will I need an attorney to close my loan?
Generally, Yes. We strive to make closings quick and easy. However, occasionally if a transition is complex or real estate is involved, an attorney may be used at the closing.
Does DCU provide business loans in all US states?
Commercial vehicle loans and Business Platinum Visas are available in all states. Commercial Property loans and Lines of Credit are available to business members in MA, NH, RI, and CT only.