Are there major concerns you should have going through your bank?

Yes. Under most loan documents, the bank cross defaults and cross collateralizes the banking relationship. This means that if the customer defaults under one loan, the bank might use collateral in the equipment to satisfy other obligations.

Banks will typically file a Uniform Commercial Code (UCC) on all equipment, inventory, cash operating account, accounts receivables, etc. Working Ox lenders will only file a UCC only on the equipment that is being financed. Once a bank is paid off and if the UCC is not cancelled, you will still have a blanket lien on all assets. This happens often and causes a problem when you are applying for another loan which gets delayed until the original UCC lien is removed.

Banks require yearly reporting of company financial statements, tax returns, personal tax returns and personal financial statements which is burdensome. Once our transaction is signed, there is NO yearly reporting or yearly renewal fees if payments are current–it is that simple.