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Frequently Asked Questions

Answers to Your Questions About Business Services.

What types of collateral are acceptable for a business loan?

The following types of loan types and collateral are available: commercial real estate, rental property, business vehicles, equipment, and unsecured lines of credit.

Unacceptable types of collateral include boats, trains, airplanes, trailer parks, gas stations, mutual funds, hotels, motels, Section 8 properties, livestock of any kind, and vehicles that are older than 10 years.

 

From application to closing, how long is the business loan process?

Once the application is complete and all supporting documentation is received, the typical business loan process may range between 30 days and 45 days. However, some non-real estate secured loan applications may have a faster processing time.

 

Do I need a business license to open an account if I operate as a sole proprietorship?

Business license requirements vary by state, municipal area, and industry. Please visit your County License Office for assistance with the specific license requirements for your business before opening your business account.

 

Who do I contact to reorder business checks?

You may visit your local branch or contact Member Services at 1.888.AVADIAN (1.888.282.3426) to reorder checks.

 

Will I receive monthly statements or coupons for my business loan?

Member business will receive monthly statements and may receive payment coupons upon request.

 

Can I open a business account without an EIN, formation documents, or an operating agreement?

Required business formation documents are based on entity type. Refer to the Alabama Secretary of State’s website to ensure that you’ve filed the proper paperwork for your business prior to opening your business account with Avadian.

Additionally, we’ve written this eBook to walk you through some things to consider as you start your business – from business structure to articles of organization.

 

How many years do I have to be in business to qualify for a loan?

As a general guideline, Avadian requires at least two years of business existence. However, certain other criteria may be considered when reviewing a request for funding. Please speak with a Business Loan Officer to discuss the specifics of your business needs.

 

Can I use my name instead of my business name on my business account?

Yes, if it is a sole proprietorship, and you are using your Social Security Number.

 

Why do I need my personal tax return to apply for a business loan?

We require all of our business loans to be personally guaranteed by individuals having 25 percent or more ownership interest in the business. This is why we request signed copies of both personal and business tax returns. If you file your business income on a Schedule C in your personal tax return and do not file separately, we will accept a personal tax return will be sufficient.

 

Why isn’t my loan being reported to credit bureaus?

Business loans are not required to be reported, and the credit bureaus do not accept reporting under consumer laws. This is why we ask for a Business Debt Schedule and compare it to all debt listed in the Profit & Loss Statement and to the assets and liabilities in the tax return.

 

Do I need a business license for a Limited Liability Company if I plan to operate out of my personal residence?

No. The purpose of a business license is to be able to able to sell goods or services from a location not used for personal use. Web-based businesses do not require a business license in the state of Alabama because there is no store front from which goods or services are being sold. However, the business still must be registered with the State of Alabama.

 

Is there a Business Services file-hosting service to which I can send my personal financial documents?

We do not currently have a designated file-hosting service for confidential information. However, our email is secure, and you may email documents directly to a Business Services staff member or drop them off at your local branch to have them sent to us.

 

I sell products made with CBD oil. Am I eligible for a business account with Avadian?

Avadian does not open business accounts for CBD or any other marijuana-related businesses.

 

Why isn’t Shared Branching available for business accounts?

Business accounts are not accessible via Shared Branching because they are considered “specially titled accounts” because of ownership and access restrictions. Such accounts often require specific paperwork and/or court orders describing account activity and transaction requirements that prohibit Shared Branching access.

 

Who is required to sign loan documents on a business loan?

Any principal having at least 25 percent ownership interest in the business or any person authorized to execute lender’s forms are required to sign loan documents.

 

Why am I being asked for my business and personal tax returns after my loan has closed?

As part the Business Loan Agreement, you agreed to furnish annual statements and tax returns.

 

Is there a personal guaranty requirement for a Business Visa Card?

Personal guarantees are required by all principals for all business member loans, including credit cards. A principal is defined as anyone having at least 25 percent ownership interest in the borrowing entity. Please contact Member Services at 1.888.282.3426 and ask to speak with a Business Loan Officer if the entity is a non-profit organization.

 

What type of rate can I get on a commercial vehicle loan?

Since interest rates on commercial loans are determined by various factors, please speak with a Business Loan Officer to discuss the specifics of your business needs.

 

When opening a business account, will Avadian pull my personal credit or business credit report?

Avadian will perform a “hard pull” on your personal credit report from at the time of application.

 

What are rates for commercial estate loans?

Since interest rates on commercial loans are determined by various factors, please speak with a Business Loan Officer to discuss the specifics of your business needs.

 



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