Farmers and Merchants Bank blog > Bank Products and Services

How to Make a Loan Payment Online

November 8, 2021/in Bank Products and Services

Open a browser and navigate to https://fm-bank-updates.stage1.estlandhosting.com/

If you are an F&M Bank customer with an online banking user ID and password, enter that information at the top right to login.

If you need to enroll in online and mobile banking, choose Enroll in Online Banking directly beneath the login portal.

Enter your User ID and password to login to online banking.

Please note, for security purpose, two-factor authentication is required. A temporary passcode will be delivered by text, phone call, or by Authy app if previously installed.

Click on the tile with your loan account information

Click on the tile Pay from another Bank

Enter your payment amount and click continue.

On this screen, click the down arrow beside Pay from Account to select from a payee that has been previously setup. Click Continue and confirm your payment on the next screen. You will receive a confirmation email that payment has been issued.

To setup a new payee, click the grey box for Add Payment Option shown above.

On this screen, confirm your personal information is correct and enter the information for your external payment options. Click add payment.

Now that your new payee has been added, you will be redirected to the previous screen.

Click the down arrow beside Pay from Account to select your payee, click continue and confirm your payment on the next screen. You will receive a confirmation email that payment has been issued.

Thank you for making your loan payment online with F&M Bank!

How to Make a Loan Payment with Online and Mobile Banking

November 8, 2021/in Bank Products and Services, Personal Finance, Technology

Making your personal or auto loan payment is simple and easy with online and mobile banking from F&M Bank. If you have previously enrolled in online banking, please skip to Step 2. If you are not enrolled in online banking, please follow Step 1 to enroll.

STEP 1 – ON YOUR COMPUTER

Online Banking

Open a web browser and type accounts.fmbankva.com/enroll and enter your:

- Social Security number
- Account number
- Email address
- Phone number

STEP 1 – ON YOUR PHONE

Mobile Banking

- Open the camera app on your phone;
- Open your phone camera app and place over QR code below;
- Open the link that appears on your screen;
- Download the F&M Mobile Banking App and click “Enroll”

QR code not working for you? No problem! Simply open the App Store for iPhone or Google Play for Android and search for “F&M Mobile – VA” (image shown below) to enroll.

To make your loan payment, follow these simple steps!

STEP 2: Under “Select account type,” click on “Personal”

STEP 3: Enter your Loan Account Number

STEP 4: Enter your Social Security Number and Date of Birth

STEP 5: Click “Continue” and follow the simple instructions

Once you’ve enrolled, you’ll be able to schedule your payment by clicking on “Loan Information” and then selecting “Pay from another bank.”

Check out instructions for how to make your loan payment on the F&M Bank blog:
fmbankva.com/how-to-make-a-loan-payment-online

Set up payments within F&M Online and Mobile Banking.

If you are currently enrolled in F&M Online & Mobile Banking, you can pay your loan by clicking on “Loan” and select “Pay from Another Bank” to setup your external account.

Cash Flow, Debt, & Refinancing for Virginia Small Business Owners

September 30, 2021/in Bank Products and Services

Are you wondering if you should refinance a small business loan? Many businesses experienced the unexpected last year, and now it’s time to get back on track or strengthen your existing operation. Small business debt consolidation or refinancing could be an important part of your strategy this year. In this article, we’ll explain how to refinance business debt, cover the pros and cons, and show you how to get started. If you have any questions, call us at (540) 896-8941.

What is Debt Refinancing?

When you refinance debt, you take out a new loan (usually with better terms and/or interest rate) and use it to pay off the old loan. The main benefits of refinancing include saving money on interest, reducing your monthly payment amount, and/or changing the loan term.

When it comes to business debt, consolidating your existing loan(s) with a lower-interest commercial loan can boost your cash flow by lowering your monthly payment and shortening your repayment period.

What to consider before refinancing small business debt

There’s more than one reason to consider refinancing your small business loan(s). Perhaps the payments you’re making on your current business loan primarily go toward interest rather than principal. Refinancing your business loan, also known as debt consolidation, can help you qualify for a longer-term loan with more affordable rates. Here are the most important factors to consider before applying:

Debt refinancing does involve paying interest on any interest already compounded in your current loan.
Does the loan you’re looking to refinance have prepayment penalties? Check the fine print first.
Have interest rates fallen since you took out your current loan? Consolidating your business debt into a lower interest loan could free up extra cash to put toward other needs and expenses.
Has your total debt level changed since the original loan was made? Business lenders will want to know the debt-service coverage ratio (DSCR) for your company. DSCR is used to calculate your business’s solvency and ability to repay your debt. So if you’ve taken on more debt recently, you may have trouble qualifying for an attractive refinance loan.

Now that you’ve considered different factors, your ultimate decision should depend on what you’re hoping to get out of your debt refinance. For example, in spite of a downside, loan consolidation may still be the right move for your business if you’re looking for a longer repayment term, lower interest rate, and/or less frequent payments.

5 Questions to ask your business lender about debt refinancing

When pursuing any kind of business loan, including debt refinancing, don’t be afraid to ask questions. Your business lender is here to help you review all business loan options and find the best solution to meet your needs. Here are some of the things you may have questions about:

How long will my new loan term be?
What are the closing fees?
Will the loan have a fixed or variable interest rate?
Is there a prepayment penalty?
If I don’t qualify for debt refinancing now, what can I do to improve my application next time?

Debt Consolidation vs. Refinancing

While debt consolidation and debt refinancing can be used interchangeably, there are some differences between the two. Here’s what you need to know:

Debt consolidation is a type of debt refinancing.
The purpose of debt consolidation is to take several different loans or credit card balances and pay them all off with one new loan.
Debt refinancing generally takes one loan and replaces it with a new one to achieve a better interest rate and loan terms.
The process of applying for debt consolidation or refinancing is the same. You’ll need to provide basic information about your business’s financial situation and credit history. You’ll also need to list the debt(s) you will be paying off with the new loan.

Pros and Cons of Debt Refinancing

As with any big financial decision, it’s important to weigh the pros and cons first.

Potential Downsides of Refinancing

Prepayment penalty: Does your current loan have a prepayment penalty? If so, how much? You may still save more in interest by refinancing, but it’s something to check out. Also, if you really need to reduce your monthly debt payment to improve your cash flow, it may still be worth paying the prepayment penalty.
Getting stuck in a debt cycle: If this isn’t your first time refinancing, you may want to take a closer look at your business’s financial situation. Will refinancing this time help you pay the debt off or are you just perpetuating a debt cycle for your business?

Benefits of Debt Refinancing

Lower your monthly payment to improve cash flow and invest in your business.
Lower your interest rate to save money and off your debt faster.
Potentially improve your credit score
Refinance into a larger loan to take “cash out” and invest in your business or meet working capital needs.

How does debt refinancing work?

To start the debt refinancing process, apply for a new business loan from your business lender. At F&M Bank, we offer a variety of business loans, including small business financing through the SBA and traditional term loans for qualified borrowers. And as a longtime community bank, we are dedicated to investing in and supporting small businesses throughout the Shenandoah Valley. Our business lenders pride themselves on building lifelong relationships with clients.

Learn more about debt refinancing from F&M Bank!

Since 1908, F&M Bank has been offering business banking services in the Shenandoah Valley and beyond. Trust the future of your business to our expert lending team. Wherever you are in the Shenandoah Valley, from Harrisonburg to Staunton, you can contact a member of our team or visit one of your local branches in Augusta, Page, Rockingham, or Shenandoah county to learn more about debt refinancing or to apply for a new business loan today.

Our friendly and experienced business lending team is ready to answer your questions and help you make the best choices for your company. Have questions? Get in touch today!

Benefits of Banking Local for Small Businesses in the Shenandoah Valley

September 14, 2021/in Bank Products and Services

Small business owners encounter many challenges in running a local business—banking shouldn’t be one of them. If you’re looking for the best bank for small business, look no further than Main Street. Your local bank offers the same products and services as the bigger banks, but with more flexibility in making lending decisions and saving you money on interest and fees. As reported by a 2020 Community Banking Study from the FDIC:

“Community banks provide their local communities with valuable products and services, including offering various loan products to business owners and developers, small businesses, and farms … Community banks also continue to meet the credit needs of less economically vibrant areas, such as rural counties experiencing population outflows.”

So, whether you are a relatively new small business owner looking to build a banking relationship, or you’re not satisfied with your current lender and looking for better rates/terms, keep reading to learn all the benefits of banking locally for small businesses in the Shenandoah Valley.

Personalized Banking Experience

One of the biggest decisions you can make is how to choose a bank for your business. When you choose a local bank like F&M for your business banking needs, you get more than a banker or lender. Instead, consider us the newest member of your team. We build relationships with our business clients to support your needs and growth throughout the life of your business.

So, what does a personalized banking experience look like?

Anticipating your individual needs
Customizing loans and other services to meet your needs
Providing information and advice to support your business goals
Making ourselves available when you have a question

With personalized service, you are never just another account number. It saves you time to work with a local bank that knows your community and your business’s place in it. By anticipating your individual needs, we can make recommendations before you even realize it’s time to take the next step. Take it from Barren Ridge Vineyards in Fishersville, Augusta County:

“We have found F&M Bank to be everything a local bank should be: a bank that heard our story and believed in and supported our vision.”

Plus, we care about the same things you do. From volunteering with local charities to cheering for our kids at local sporting events, don’t be surprised if you run into your local business banker outside of the bank!

Customized Financing with Competitive Rates

When it comes to lending options for small business, local banks represent more than their share of the market:

“Community banks represent 15 percent of the industry’s total loans but 30 percent of its CRE loans, 36 percent of small business loans, and 70 percent of agricultural loans,” according to the same FDIC study. This shows that while local banks may have a relatively small footprint, they are the lender of choice for many small businesses and farmers. Let’s take a closer look at the reasons why:

Local banks often have more flexibility. With lending decisions made locally, there is more flexibility to lend to small businesses and customize financing.
Community banks offer lower fees and interest rates. In part because they are locally owned, local banks are able to help businesses save money on loan rates and fees for other business bank accounts and services. Every dollar saved makes a difference to a small business.
You don’t have to give up convenience. Local banks tend to offer the same perks and services as bigger banks such as online and mobile banking, remote check capture, credit card processing, and more.
We understand local needs and concerns. Community banks are part of the local economy, which thrives when local businesses are thriving. That’s why we are often able to approve small business loans that would likely be rejected by bigger banks.

As you can see, it pays to build a relationship with your local banker. When you need financing, we will make every effort to provide you with affordable loan terms and rates.

Community Focused, Just Like You!

If you’re still wondering, should I bank locally for my small business lending needs, keep in mind that the money you put into your local bank through deposits and interest paid on loans gets reinvested in your community through other loans and donations to nonprofits.

“F&M Bank is an exemplary model of what it means to be a community bank. Their support and involvement with local business and nonprofits is unparalleled, and we are proud to partner with them,” writes Kristi Williams, President & CEO United Way of Staunton, Augusta Co. & Waynesboro (SAW)

Local banks support the community in many ways, such as sponsoring local sports teams, financing construction in the community, and helping small businesses get on their feet and grow. So, when you choose a local bank for your business banking and lending needs, you are also reinvesting in the community. Larger banks often lack those social ties and interconnected relationships with the local economy and community.

Partner with F&M Bank for your business banking needs!

Are you looking for the best business lender in the Shenandoah Valley? For the past century, F&M Bank has helped local businesses like yours grow and thrive. Whether you’re expanding, remodeling, or making a business move, we tailor your loan to meet your needs. Our team walks you through the process and guides your experience with the personable attention your business deserves.

To get started, visit or call one of our convenient locations across Augusta, Rockingham, Shenandoah, and Frederick counties.

Protect Your Business from Check Fraud with Positive Pay from F&M Bank

September 2, 2021/in Bank Products and Services, Personal Finance

More and more people are falling victim to financial fraud and check fraud can affect your small business as well. While many business owners have simply stopped using checks, many of those same customers continue to use checks to pay their business expenses.

So how do you protect yourself and your business from fraudulent checks? If ceasing to use or accept checks in your business is not an option, there are other ways to prevent check fraud from impacting your business.

One way is to add Positive Pay to protect your commercial checking account.

→ Positive Pay matches the account number, check number, issue date, payee and dollar amount of each check presented for payment against a list of checks previously authorized and issued by your company.

→ Each time a check or series of checks are issued, a file of those checks containing the check number, issue date, payee and dollar amount is uploaded into online banking by your company. If a potential fraud occurs, you will receive an alert in online banking and be prompted to approve or reject the payment

→ Ways to reduce false positives and therefore work load of company employees:

Upload files of issued checks as they are dispersed. Any check not uploaded to the system presented for payment will reject;
Follow font best practices and guidelines (as shared by F&M Bank)

Interested in learning more? You have options!

→ Contact your local banker

→ Reach out to us online

Use the Support feature when you are logged into online or mobile banking to start a conversation.

Understanding a HELOC and How To Use It: A Guide For Shenandoah Valley Homeowners

July 29, 2021/in Bank Products and Services, Mortgage

Your home is an investment in many ways, and once you accrue equity in your home, you have it at your disposal for financial uses. If you’ve been wondering why apply for a HELOC, we’ll walk you through what a HELOC is, all the things you can use it for, and how to make the most out of your HELOC. Whether you’ve built home equity from paying down your mortgage and/or the appreciating value of your house within the market, you can benefit from your ownership of the home to finance projects and consolidate debt.

What is a HELOC?

A Home Equity Line of Credit (HELOC) is a revolving credit account, similar to a credit card, that provides a credit limit for a certain amount of time (the draw period). You only draw funds from the account when you need to, make payments on what you borrowed, and use the credit line again until the end of the draw period.

While a HELOC is similar to a credit card account, the primary difference between the two is what kind of interest rate you can get. Because HELOCs are secured by your home equity, you can get a much lower rate than you would with a credit card. So, financing home renovations and other large expenses with a HELOC is usually more affordable than using a credit card or personal loan. Depending on how much equity you have in your home, you may also be able to get a higher credit limit with your HELOC than with a credit card or personal loan.

The other attractive benefit of a HELOC is its flexibility. Unlike a Home Equity Loan, you don’t receive a lump sum that you have to use right away. In fact, some people use the HELOC as an emergency account. You can open it now and won’t owe anything until you first draw funds. Then you can use your HELOC as many times as you want to (up to the credit limit) through the draw period.

Using a HELOC for Home Renovation

Have you been dreaming of a brand new kitchen? Need to add an addition to your home to create office space or room for a new baby? A Home Equity Line of Credit is a convenient way to finance your home renovation.

Benefits

Lower interest rates
Option to make interest-only payments
Possible tax deduction for interest paid on HELOC if the funds are used to buy, build or substantially improve your residence. Please consult your tax advisor regarding your particular situation.
Potential ROI when you sell your home from renovations financed through your HELOC
Variety of uses such as updating your home to meet your needs, improve energy efficiency, and more.
Great option for when you’re looking to sell your home but want to increase its value first

Using a HELOC For Debt Consolidation

Are you drowning in credit card debt? Do you have so many different monthly debt payments, it’s hard to keep track?

Debt consolidation means taking out a new loan to pay off multiple debt accounts, such as credit card balances, personal loans, student loans, and more. Consolidating your debt with a HELOC could help you save money on interest and reduce the number of monthly bills you need to keep track of. And since HELOCs are so flexible, you may still have some credit left over to use on other things, or you can pay off your HELOC balance before using it again.

Using a HELOC For a Second Home or Investment Property

Whether you’re looking to purchase a vacation home or an investment property, you can use your HELOC to come up with a down payment on your second property and/or to make improvements and repairs to a second property you already own.

Financing Education Expenses

Whether you’re a parent with a child approaching college age, or an adult homeowner looking to return to school, a HELOC can also be used to pay for tuition and associated expenses with higher education, as well as private schools. Pay as you go and make interest-only payments if you need to keep your costs down while in school.

Paying Off Medical Debt

Whether you just got hit with a high medical bill, or you know an expensive surgery or treatment is coming up, you can use your HELOC as an emergency fund or to pay off medical debt. As mentioned earlier, HELOCs offer lower rates than credit cards, so it could be a more affordable way to pay your medical bills or any other large, unexpected expense that comes up. Preserve retirement savings and use your HELOC instead.

Tips For Getting The Most Out of Your HELOC

While there are many advantages to having a HELOC, you can get the most of your new Home Equity Line of Credit by following these tips:

Make on-time payments to avoid a late fee.
Pay more than just the interest due if possible.
Know when your HELOC draw period ends.
Review the terms of your HELOC and be mindful of fees.
Understand the closing costs associated with your HELOC.
Best used for smaller projects and expenses.
Try to use your HELOC, pay off what you borrow, and then use it again instead of maxing out your credit limit.

Apply for a HELOC From F&M Bank!

Looking for a HELOC lender in the Shenandoah valley? F&M Mortgage is a true local mortgage company that has served the community since 1999. Contact us to learn more or start the process of applying for a Home Equity Line of Credit. You can also apply online whenever you like, or visit your local branch office in Staunton, Harrisonburg, Winchester, or one of our locations in Augusta, Page, Rockingham, Frederick, or Shenandoah county to speak with a loan officer about your options.

Owning vs. Leasing Commercial Real Estate in Virginia

July 6, 2021/in Bank Products and Services

After finding the right property for your business, how do you decide whether to buy or lease it? There are pros and cons with both options, including the opportunity to build equity and profit off the future resale of your commercial real estate property. Keep reading for a complete guide to owning vs. leasing commercial real estate so you can make the best decision for your business. As always, our business banking team is here to help if you have questions!

Pros and Cons of Renting Commercial Real Estate

Let’s start with the benefits of renting a space for your business:

No down payment, just need a security deposit and first month’s rent
Usually cheaper on a month-to-month basis, including fewer expenses for upkeep
Flexibility to move after lease is up if you outgrow the space or want to be in a newer building
Get the most desirable location possible, even if it’s not for sale
Easier accounting since your rented space is just a monthly expense, not an asset or liability

On the other hand, you need to consider these potential drawbacks:

You won’t build equity or benefit from capital appreciation if the property value rises
Rent is a monthly expense forever, whereas a commercial mortgage can eventually be paid off
You may be responsible for certain upkeep expenses on some leases
Rent may increase annually or with each new lease
No opportunity to earn passive income by renting out part of your space to others

Buying Commercial Real Estate: Pros and Cons

Thinking that buying might be the way to go? Here are the benefits you stand to reap:

Equity increases over time and the asset value appreciates
Potential tax benefits and breaks for interest, depreciation, and other expenses
More control over the property and design or renovation decisions
Potential for renting out to other businesses
Improvements to the building and property add value for your business as the owner
Fixed mortgage payments as opposed to your rent potentially changing

On the other hand, owning may come with more expenses and responsibility:

Need enough cash upfront for a down payment, closing costs, and other fees
Can be hard to qualify for commercial real estate financing
Have to budget for the ongoing costs of upkeep
Less flexibility since you’re tied down to the location
Liability

Tips for buying commercial property

If you’ve only purchased residential property before, you’ll want to work with an experienced commercial real estate agent and ask questions throughout the process. Commercial real estate is a different animal from buying a home to live in, but once you understand how it works and the different terminology, you’ll be an expert in no time.

Some of the best commercial properties are not necessarily listed, which is why working with an experienced commercial real estate agent is so important.
Talk to your real estate agent at the beginning to be sure you understand how the buying process works and what information you’ll need to provide along the way.
When you’re ready to start the buying process, also talk to us about financing for your commercial real estate property. We can walk you through the steps and paperwork required to apply for a commercial real estate loan.
As you look at different properties, consider zoning, closing costs, tax issues, and environmental conditions.
If the building already has tenants, you’ll need to negotiate with the current owner/landlord over assignments of existing leases and delivery of current rents due. You’ll also want to obtain copies of the rent rolls and existing leases to make sure that neither the tenant nor seller is in default and that there is no past-due rent.
Negotiating with commercial landlords can be challenging. They can look to keep some legal tricks hidden from you.

Contact us with all your CRE needs and questions!

Wherever your business is headed, F&M wants to help you get there. As a trusted community bank, we understand local business like no one else and believe that one business’s success contributes to the success of the entire business community. For more help with the buying process, F&M Bank is here to be your local commercial real estate expert in Virginia. Real estate is a local business, so when you’re looking for a commercial land loan or other type of commercial real estate loan in Augusta County, you want to work with a local bank who knows the market. Call us today to discuss your business goals and we’ll help you reach them with flexible financing options.

Cash Management 101

January 5, 2021/in Bank Products and Services

For small businesses getting back on their feet in 2021, it’s a good time to review the basics of cash management 101. Need help improving your cash flow? We can help! Keep reading for treasury management tips and your best options for cash management help.

What is Cash Management?

In business, cash management is a key component of a company’s financial stability. Through the process of collecting and managing cash flows, your ultimate goal is to maximize liquidity and minimize the cost of funds.

So, how does cash management work? The two main steps are to monitor your business’ incoming and outgoing payments so you always know where your cash flow stands.

If your cash flow is projected to fall short, having a business line of credit can help. With careful cash management and access to a flexible credit line, you can spot shortages before they trip up your operation and transfer funds from your credit line to cover the gap until more money comes in.

Understanding the Cash Flow Statement

Now that you know cash management is the process of managing cash inflows and outflows, let’s look at the cash flow statement, which records cash inflows and outflows with a bottom line that shows how much cash is available at a given time. It is broken into three parts: operating, investing, and financing. Since cash is the primary asset your business uses to pay obligations, it must be managed accordingly to maximize earnings. The cash flow statement is a central component of cash flow management for businesses.

Why is Cash Management important to my business?

Good cash management will impact future growth for the company. If done improperly, your business may suffer problems such as:

Poor understanding of the cash flow cycle
Uncertainty of the difference between profit vs. cash
Lack of cash management skills
Bad capital investments

Cash Management vs. Treasury Management

Though these terms are used interchangeably, the scope of Treasury Management is much larger and includes a company’s funding and investment activities. In contrast, Cash Management usually refers to wire transfers, sweep accounts, merchant services, and business credit options.

What is Cash Flow?

Cash flow is the net amount of cash and cash-equivalents transferred into and out of your business.

What is cash flow used for?

A positive cash flow shows that your business’s liquid assets are growing, which can help you pay off debts, reinvest in the business, and more. The greater flexibility you have with your cash flow, the stronger your overall business will be to both take advantage of boom times as well as weather downturns.

What is Working Capital?

A company’s working capital is the result of its current assets minus liabilities. Working capital balances are an important part of cash flow management because they show the amount of assets a company has on hand to cover its liabilities.

Current assets: cash, accounts receivable within one year, inventory
Current liabilities: all accounts payable due within one-year, short-term debt payments due within one year

What is ACH?

The automated clearing house (ACH) is an electronic funds-transfer system that facilitates payments in the U.S. Recent rule changes mean most credit and debit transactions made through the ACH will clear on the same business day.

Where can I get help with cash management?

As your community bank in the Shenandoah Valley, F&M Bank offers everything your business needs to manage cash flow. With online cash management to streamline your processes, you’ll enjoy 24/7 access to current transactions and old bank statements, funds transfers, bill and loan payments, and more. Simplify your payroll and enjoy local support with all your Merchant Services needs.

Learn more about cash management services from F&M Bank!

Since 1908, F&M Bank has been offering personal and business banking services in the Shenandoah Valley and beyond. Our local team guides you to the accounts and services you need to do business in the Valley. Personal service from people you know and trust lets you develop relationships with your banker. Contact a member of our team to learn more about our cash management services!

Online and Mobile Banking User’s Guide

November 20, 2020/in Bank Products and Services

Online Check Orders

October 1, 2020/in Bank Products and Services

F&M Bank has partnered with a new vendor to manage and process our check orders. You will notice a few minor changes when placing your next online order.

The new check order portal can be accessed through our website, or your online banking account. The look has changed, but you can expect the same functionality! Check orders will be conveniently delivered directly to your address on file.

You may order the standard F&M Bank checks, or shop our vendor’s catalog for custom design options. Those can also be found on our website prior to placing your order.

The online portal is an easy to use option designed for your convenience, however you may still continue to order checks through your local branch if preferred. If you have any questions, please don’t hesitate to contact us!