5 Things You Need to Get a Small Business Loan
Small businesses are the backbone of our communities, but we understand how hard it can be to turn a good idea into a living, breathing business. That’s why we have a staff 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.
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.
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.
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.
Collateral includes a listing of any additional assets — property, equipment accounts or inventory — that show your ability to repay a loan.