So You Want a Loan?

012503_real_home_loan3You’ve made a decision to expand your existing business or start a new operation.  The business plan is complete; you’ve figured out the structure of the business; you’ve even considered your customer base. So, now you are wondering, “what is next?”  Next, you are ready to talk to your lender to secure the funds needed to move forward with this venture.


As you are choosing your lender, look for an organization that is knowledgeable about your enterprise. During your investigation, either by phone or online, inquires as to the products and services that are offered.


If the products and services meet your needs, you’re now ready to set up a meeting with the lender.


At the initial meeting, come prepared with the following information:  current financial statements, two to three years of tax returns, and a copy of your business plan.  It is also beneficial to be aware of your credit situation.  While the majority of us do not know our credit score, we are aware of our payment history and credit standing.


During your meeting, the lender will discuss your proposed business potential and determine loan eligibility.  They will help you complete an application, such as a financial statement, if not previously prepared.   Your financial condition will be analyzed to determine equity, working capital and repayment ability.  The loan officer will also inquire about the management structure of the operation and collateral offered for the loan.  This is generally known as the “5 C’s of Credit” – Capital, Capacity (to repay), Conditions, Character and Collateral.


Through this process, loan structure and rates will be discussed.   The lender will offer loan terms based on the type of loan you are requesting.  They will also structure the payment consistent with your flow of income.


Don’t think the process ends after the loan is approved. During the process, you should be forming a new partnership with your lender.  Stay in touch with them as changes occur in your operation.  Invite your lender to visit the operation so they will be aware of your current and future needs.


With these tips in mind, you’ll be on your way to that new or expanded operation in no time!  So, if you do want a loan, give us a call at 888.339.3334 or visit us at and we’ll help you get started!

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