If you’re looking for a commercial or business loan for your small business, you’ve come to the right place. Here are four of our best tips that can help you get a commercial loan.
An excellent first step is to find and research potential lenders in your area. Small and midsize banks can potentially give you more flexible terms, more personal attention, and the loan agreements are usually built upon personal relationships. Before applying, make sure the bank you are using provides commercial loans to businesses in your industry.
Once you’ve determined a potential bank for your loan, it’s a good idea to get to know the decision-makers at the bank. At local banks, decisions are typically made by people who live in the community, have face-to-face relationships with their customers, and understand your needs.
Because of the personal nature of local banking, local financial institutions can often quickly approve loans for small businesses that other lenders would not. That’s why getting to know your banker and developing a personal relationship with them can make a big impact on the bank’s propensity to approve your loan.
A concise, professional business plan summary can go a long way in creating confidence with your bank that you are a serious business professional. Since the bank is essentially investing in your business, it’s important to show that you understand your own operation and market and that you’ve done the necessary research to provide realistic calculations to predict future financial results.
Being an optimistic business owner is fantastic. Being overly optimistic can hurt your credibility. When it comes to your loan, one of the most important things that lenders want to be confident of is your ability to pay back your loan. Try to keep your business forecast realistic and reasonable, and don’t overstate your projections. Having your finances in order and providing thorough financial detail through your business plan can help increase the odds of getting a commercial loan for your business.
At First Independent Bank, we’re proud to be a local bank investing in the Southwestern Minnesota community. We provide financing solutions tailored to your commercial needs. CLICK HERE to learn more about our commercial and business banking solutions.
