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When preparing to do your interview and complete your small business loan application, it’s always a good idea to know what is in store and what you need to know to give the best possible loan submission. Banks, especially in these tough economic times, are going to be a little less willing than usual to distribute credit to businesses, so you need to know what to do to maximize your chances of getting good funding.
A good rule to follow is that a small business loan application is best submitted along with a written proposal. A good proposal will include the following:
The name of the business, along with the principals involved and their social security numbers,
The amount of the loan that you are requesting,
A succinct purpose for the loan, explaining exactly why and how it will be used,
A description of the business, including its history, purpose, the employees involved and the direction in which it is going,
Details on the legal structure of your business,
A description of your product, your consumer base, and your competition,
Balance sheets for the past three years (or projected balance sheets if you are starting out)
Securities or collateral you are willing to pledge for the loan.
This will show the loan officers that you are very serious and have more information to provide them than merely the small business loan application. You should also be familiar with your credit report, as they will probably seek some information from Dun & Bradstreet, and you will want to know what you stand when it comes time to answer questions about your ability to repay the loan to the bank. Business loans are a bit more complex than merely filling out a small business loan application, but they are also a phenomenal key to financial success.
