5 THINGS YOU NEED TO GET A SMALL BUSINESS LOAN
It is no secret that small businesses are the backbone of our local communities, but we understand how hard it can be to turn a good idea into a living, breathing business. That is why the experts at Renasant Bank have a staff of small business lending pros ready and waiting to help you get started. Whether you’re starting an online retailer, a food truck, or a home improvement service, almost all bank lenders will want to see these five things before they lend you the money you need to make your idea a reality.
1. BUSINESS PLAN
The first thing you’ll need is a detailed business plan. This document is a detailed overview of your business and its daily operations as well as personal information including your past education, work history, and market research for your business. Your business plan proves that you are serious about building up your small business.
2. PRO FORMA
Your community banker will want to know the complex answer to the very simple question, “How will your business make money?” The Pro Forma is a business financial statement that should answer that questions by showing current and projected cash flows. With this information secured, a lender can feel confident that you will repay the small business loan.
3. PERSONAL FINANCES
To get a picture of your personal financial background, bankers will want to see your current personal financial statements as well as a positive credit history and three years of tax returns. This is just to ensure that you know how to responsibly manage any money that the bank may lend you.
4. EQUITY
Your community bankers will want to know how much Cash on Hand, by way of personal or outside investment, you have to be used as working capital in your business’s operation.
5. COLLATERAL
Collateral includes a listing of any additional assets — property, equipment accounts or inventory — that show your ability to repay a loan.
GETTING STARTED
If you are ready to apply for a small business loan, contact the experts at Renasant Bank. Our small business experts are on standby and ready to help! Launch the future of your small business forward with the support of Renasant!