4 Tips That Can Help You Get a Commercial Loan

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.

Research the Options

An excellent first step is to find and research potential lenders in your area. You can include both large and smaller banks and credit unions in your research, but shopping around is vital. Large banks may be willing to finance your business but often have qualifiers that exclude small businesses.

On the other hand, small banks can potentially give you more favorable terms, more personal attention, and the loans made are usually built upon personal relationships. Before applying, make sure the bank you are using makes commercial loans to businesses in your industry.

Get to Know Your Banker

Once you’ve determined the potential banks for your loan, it’s a good idea to get to know the decision-makers at those banks. This can be difficult to do at large banks, but at local banks, decisions are usually made locally by people who live in the community, have face-to-face relationships with their customers, and understand local needs.

Because of the personal knowledge that comes with local banking, local financial institutions can often approve loans for small businesses that big banks would not. That’s why getting to know your banker and developing a personal relationship with your banker can make a big impact on the bank’s propensity to approve your loan.

Have a Business Plan

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.

Keep Business Projections Reasonable

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, 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.

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