5 Things to do Before You Apply for a Small Business Loan

Here are five simple steps every small business owner can take to develop a solid business loan application.

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3. Assemble Your Assets

When a bank determines your eligibility for a loan, they will take into account all of your business and personal, assets. Prepare a list of all your assets to include in your loan application.

Include not only real estate, but also any equipment or furniture belonging to your business as well as your share in any other businesses you own or have invested in. Also, your personal assets will include not only property, but also mortgages, retirement plans, and financial trusts.

4. Create Your Business Plan

Your business plan is one of the most important financial documents you can bring to the table when applying for a business loan. It should include your company’s:

a. Current balance sheet, broken down by month.

b. Income and cash flow statements.

c. Loan description request: the amount, term, and how it will be used in business.

d. Plan for securing and paying off the loan.

5. Talk to an Expert

Before meeting with your local bank, meet with a business plan consultant or competent financial professional to review your business plan and loan application and ensure everything is in order. Potential proofreaders could include lawyers, accountants, and your business mentors.

According to Keybank’s Lisa Oliver, “An unprepared loan applicant immediately places into question in the lender’s mind whether this is really a feasible plan and whether the lender can pull it off.”

Show your bank that you mean business by planning ahead and presenting a comprehensive and convincing small business loan application.

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Photo Credit: Club Monaco

Megan Webb-Morgan is a web content writer for Resource Nation. She writes about small business, focusing on topics such as startup business loans and small business financing.

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