May 2024 - SouthStar Bank, S.S.B.

by SouthStar BankMay 15, 2024

Understanding Small Business Loans

Small business loans support business owners as they establish, grow, and manage their enterprises. The U.S. Small Business Administration (SBA) estimates that there are 32.5 million small enterprises nationwide, making up a sizable portion of the American economy. Even while each business is different, they all have one thing in common: they all require business funding. Understanding the fundamentals of small business loans is crucial for small business owners seeking financing for their businesses. Funding for small enterprises that are underfunded Many small business funding options are available for historically underrepresented firms, including those run by women, veterans, and business owners from Black, Asian, Latino, and Native American communities. Small Business Loans for women’s businesses Women who own their own enterprises are eligible to apply for grants or debt financing. The growth of women-owned firms has outpaced that of all American businesses in recent years. However, when women are given business loans, the average yearly loan amount is around 33% smaller than it is for males. Financing for minority businesses Business grants and loans are options for capital for business entrepreneurs of color. Those who live in historically underrepresented communities confront more funding-related entrepreneurial challenges than their peers. Funds are allocated by institutions and lenders all around the United States to help minority-owned enterprises. Financing for veterans’ businesses Small business owners with a history of military service also have access to a variety of services and funding choices. Many veterans find it difficult to apply their military experience to civilian professions after leaving the service, so some opt to launch their own businesses instead. Veterans’ business loans are one of the secrets to success. Obtaining a small business loan Depending on the kind of business loan you’re looking for, the application process for small business loans varies. Equipment financing normally requires less paperwork than a business line of credit, while short-term loans typically have less paperwork than long-term loans. To increase your chances of approval, it’s still a good idea to have the following documents on hand in case they are required: Checklist for applications for small business loans Once you’ve decided that your business is capable of handling a loan, you should start gathering the appropriate paperwork for your loan application. Although the specific paperwork varies depending on the finance partner, it almost certainly consists of the following: Remove these usual small business misconceptions Applicants who are rejected frequently commit the error of submitting financial documentation and company plans that are insufficient or poorly thought out. When requesting a small business loan, it’s critical to gather as much prepared information as you can. Shut Off Your Loan After approval, the closing procedure involves going over the paperwork that will decide the conditions of the loan you’ve chosen. Your interest rate and repayment plan will be outlined in a legally enforceable agreement called a business loan contract. Make sure you comprehend what the lender is asking of you and how these conditions will affect the financial viability of your […]

Bank News, online-banking

by SouthStar BankMay 15, 2024

Online and Mobile Banking Tips

In a few easy steps, begin internet banking As long as you have an account with SouthStar Bank, you are eligible for online banking. Starting to use online banking is simple with a computer or smartphone that has Internet access. 1. Before enrolling in Online Banking, you will need your account number, the type of account, social security number, zip code on file with us, and email address on file with us. 2. Click here to get started. Alternatively, you can type southstarbank.com into your web browser, then click the E-Banking tab and select Login from the dropdown menu. Next, click the picture above where it says, “Online Banking Login” and click the Enroll now link (below the Login button). *Please note that you must enroll in online banking through the web browser before you can login through the mobile app. Features available online and on the mobile banking app? The majority of transactions can be completed online or via SouthStar Bank’s mobile app. Benefits of using online banking include: The status of pending deposits and charges, or those that have not yet been reflected in your account, is frequently displayed. Please be advised that the amounts you see for pending debit card transactions can differ from the total that actually posts to your account. Before presuming that pending deposits are available for payments or withdrawals, carefully review the funds availability policy of your bank or credit union. How to make a Mobile Deposit? The SouthStar Bank mobile app also allows you to deposit checks into your account via the mobile deposit feature. The mobile app streamlines the check deposit process and just needs a few steps: 1. If you haven’t done so before, download the SouthStar Bank mobile app a. Open your phone’s app store and search for “SouthStar Bank Mobile” – you will see the SouthStar Bank logo next to the app. Next, install the app. Once the app is installed, you can open it and log in with your online banking credentials. 2. Follow the guidelines in the mobile app to deposit the check. a. At the bottom of the mobile app, click the Deposit tab. b. Next, click where it says “Deposit a check”. c. Select which account you want the check deposited into. (Use the dropdown arrow and then click on the correct account.) d. Type in the amount of the check by clicking where it says “Check amount”. e. Click the “TAKE PHOTOS” button. f. Before taking your photos, make sure there is ample light and the check is placed on a solid, dark-colored surface. Also flatten the check all the way if it is not already flat. g. Align the check with the box, hold steady, and then tap the capture button. h. If the picture was captured clearly, tap the “USE” button. Otherwise, tap the “RETAKE” button and try again. […]

Business, Mortgage Loan Process

by SouthStar BankMay 15, 2024

Understanding Small Business Loans

Looking to start or expand your small business? Finding and understanding small business loans doesn’t have to be a challenging process if you do your research. After determining your business’s needs, contact SouthStar Bank. We’re a local SBA lender, and can help you find the loan that best meets your needs., Here are six easy steps to getting a business loan. Choose Your Loan Type Let’s start with how you plan to use the funds from the loan. SBA term loans are lump payments that are repaid over time. Depending on the need, these may be funded up front, or a short draw period may be utilized. Repayment is based on a fully amortizing loan. These terms are based on the use of the proceeds. A traditional SBA loan offers a maximum borrowing limit of $5.5 million. You’d want to use a traditional loan to fund large purchases or to fulfill the needs of a growing business by funding company growth. If your needs are shorter in term or possibly seasonal, you may consider a business line of credit, which can provide funds for recurring expenses. This is a flexible form of financing, allowing you to access capital as needed to pay for costs like payroll or unforeseen repairs. Many business owners use these types of loans as a helpful safety net, as businesses can be unpredictable. Determine Your Eligibility. Are you a For-Profit business? Do you know and understand your credit score? While your credit score is not the only factor in the loan process, it is important to know and understand what is affecting your credit score. How long has your business been in operations? SBA loans are available to new businesses and to expanding businesses. As your hometown lender, SouthStar Bank can help you evaluate your eligibility and the steps you might need to take to obtain the best business loan for your needs. Understand Your Finances Examine the financials of your company, particularly the cash flow, and determine how much you can afford to put toward loan repayments each month. Your total income should be at least 1.25 times your total expenses, which includes your new payback amount. Understand your balance sheet. Where are you with your accounts receivable and accounts payable? Has your cost of goods gone up or down, and what? What is your leading product or service? Knowing more than just the bottom line can really play a vital role in the type loan product best for your business. Choose Between a Secured or Unsecured Loan Loans for businesses can be secured or unsecured. A secured loan requires company collateral, such as real estate or machinery, that the lender can seize if you don’t pay back the loan. Risky as it is, putting up collateral might improve your borrowing capacity and lower your interest rate. Even unsecured loans often require a personal guarantee. This means in the event that your company is unable to repay the debt, you will be responsible for […]

Lot Loans, Real Estate Investing

by SouthStar BankMay 15, 2024

Everything You Need to Know About A Land Loan

Thinking about building a custom home? If you can’t find the house of your dreams, building your own home can be ideal. All you have to do is finance the process. Fortunately, you don’t have to have a pile of money in the bank to do just that. Instead, you can take out a land loan. Land Loan: What is it? A land or lot loan is used to fund the acquisition of a piece of land. If you’re interested in purchasing land on which to build a house or other structure, you can get a land loan. The type of loan you choose will depend on where you want to acquire land and how you’ll use it. Land or lot loans are also a preferable option for potential home builders who have a concept but who might not want to start building and financing a house immediately. If you are worried that your construction has to be delayed or if you’re still finalizing your home plans, then a land loan is probably the best option for you. How Do Land Loans Work? You’ll typically need a down payment of at least 25% to take out a land loan. You’ll need a credit score of 720 or higher to take out a land loan. You may also need to provide your lender with information about how you intend to use the land. This often means conducting due diligence in regard to the property’s existing zoning, land-use limitations, surveyed boundaries, and existing utility access. This information will help lenders assess the potential risk of the loan. Lenders adjust interest rates in response to these factors, but regardless, you should expect higher interest rates than you’d see from a traditional mortgage. This is because a land loan is riskier for the lender than a mortgage. However, if a borrower has superior credit and a lower debt-to-income ratio, they may be eligible for lower rates. Once the borrower has been approved by a lender and accepted the loan’s terms, they will be responsible for making a down payment and repaying the loan at the decided interest rate. In addition, land loans typically have shorter repayment terms than traditional home loans. Terms typically range from 12 months to 3 years. Another option for borrowers, is to convert the land loan into a conventional mortgage after the building of your new home is finished. This will allow them the chance to get a fresh principal balance and a cheaper interest rate through refinancing. Converting Loans A land loan lets you secure a piece of land until you’re ready to build. You’ll only have to pay for the costs of holding the land itself. When you’re ready to start building, you’ll want to convert the land loan to a construction loan. This loan is a 12 to 18 month loan. Your land loan will roll into your construction loan, and the down payment you used will be applied to your construction loan. Your lender then distributes […]

Portfolio loans

by SouthStar BankMay 15, 2024

What to Know About the Portfolio Loan Option?

Struggling to get approval for a traditional mortgage loan? Then, a portfolio loan might be the option to help you pave your path to home ownership. Understanding the basics of a portfolio loan can help you become a homeowner or extend your real estate investment holdings. A Portfolio Loan: What Is It? A portfolio loan is a kind of mortgage that a lender would originate and keep in their “portfolio” instead of selling it to a secondary market like a traditional mortgage loan. Due to this process, the lender is able to set more flexible terms for the mortgage, which are frequently to the borrower’s advantage. This allows prospective homeowners who are having trouble being approved for a traditional mortgage accomplish their dreams of homeownership. In the majority of conventional mortgage loan scenarios, banks and credit unions use a set of governmental guidelines to underwrite and create loans. These rules impose minimum down payment requirements, maximum loan amounts, specific debt-to-income ratios, and other limitations on potential borrowers. However, the criteria for awarding portfolio loans can differ significantly, which allows the lender to find the loan solution that is most ideal for their client. Portfolio Loans Pros No matter which financial lender originates and underwrites a portfolio loan, the product will always offer certain advantages like: The Function of Portfolio Loans Portfolio loans typically have higher loan interest rates and origination fees in exchange for having fewer strict loan approval standards. They might also have restrictions on flexibility and prepayment fees. Lenders frequently seek a higher interest rate on a portfolio loan product since they are free to use any criteria they choose when deciding whether to underwrite the loan. If you’re having difficulties acquiring a standard loan because of a poor credit score, a troubled credit history, or the fact that you’re self-employed, a portfolio loan might be the best option for you. It might also be a possibility if your debt-to-income (DTI) ratio is high, you need a loan for a home in less-than-ideal shape, or the purchase price exceeds the loan’s maximum amount. Homebuyers who use a portfolio loan should anticipate a quicker approval process, less stringent upfront conditions, and better customer support from their portfolio lender, who will handle the loan’s direct servicing. Additionally, they should expect higher origination and interest rates, as well as less flexibility with their repayment timeline. You might want to discuss if a portfolio loan makes sense for you before submitting an application with a mortgage broker, an accounting professional, or a financial expert. The Bottom Line Portfolio loans might be a useful instrument for real estate financing because they aren’t meant for resale and don’t have to meet as strict eligibility rules as traditional mortgages. In some cases, borrowers may find them to be more alluring than conventional loan options. However, compared to conventional mortgages, portfolio loans frequently have higher interest rates and fees. Keely Notes: I have edited this article. Please go back and review the flow of the blog […]

Employee News

by SouthStar BankMay 8, 2024

Welcome Carlton Payne

Carlton Payne, Senior Loan Officer & Mortgage Production Manager | SouthStar Bank Carlton Payne joins SouthStar Bank as a Senior Loan Officer and Mortgage Production Manager. Carlton brings with him more than a decade of experience in the mortgage industry with his focuses primarily residing in Portfolio and Secondary Financing. Leveraging his specialized knowledge of Secondary and Jumbo Mortgages, Carlton has become a go-to resource for clients seeking to get their mortgage approved. His efforts have been recognized at previous institutions with multiple top performer trips awarded based around production. Carlton appreciates that mortgages are often associated with major life milestones and finds it incredibly fulfilling to be able to help individuals and families navigate the complex process of securing a mortgage to purchase their dream home. He looks forward to building new relationships within the community and cultivating these relationships to develop a strong network. When Carlton finds time away from the office, he can be found spending time with his wife and two children or enjoying a nice day on the golf course. NMLS#858608