Start with just 3 steps
Whether you are just starting or have been established for some time, a business loan is a viable option for any business owner who, like you, wants to get ahead. To facilitate the process, it is important that you plan, get organized and have at hand all the documents that will be required by the financial institution you choose. Here is some advice that will be a big help to you when you apply for a business loan1.
- Identify the reason for your application
Expanding your business, making improvements or buying equipment are just some of the reasons that the financial institution will take into consideration when granting a business loan. In other words, the institution will evaluate any effort that adds value to your business. Therefore, you should carefully analyze your needs and expectations so your application has a solid basis.
2. Be informed about your industry before asking for a loan
The industry in which you work, the size of your business and the geographic area where you are located are factors to be considered when choosing the financial institution where you will apply for a loan. Be informed and ask questions. What is their experience with businesses like yours and what can they offer to match your needs and expectations?
3. Make a list
Review this list so you will have on hand all the documents the financial institution will need to evaluate your application.
These documents allow you to demonstrate your business’ financial situation.
- Tax returns and financial statements for recent years
- Detailed information on accounts payable and receivable
- Investments and fixed assets
- Historical cash flow statements along with projections for the current year
- Copies of contracts with most important customers, if applicable
- Patents and any other exclusive intellectual property
Review your business plan
It is very likely you prepared a business plan before you began operations, but it is always important to keep it up to date and in tune with the changes in the market and the economy. The plan should include the following:
- Description of the business
- Marketing strategies
- Competitive analysis
- Development plans
- Administrative plan
- Key employees
- Financial information
Gather your tax returns
- Ensure that filings of payroll, property and tax returns are up to date.
Develop and follow your business policies
- Establish policies for credit and accounts receivable and ensure they are followed. This will help you have a healthy cash flow.
- Ensure that your accounting system reflects the status and results of your business.
- Have appropriate insurance to cover debts and property damage. This way, you protect what you have built over years of work and effort.
This basic guide will help you with the process of applying for a business loan. Remember that your banking officer is your best partner for success in your business and can guide you in choosing the best product. Learn more about how we can help you obtain the financing that will let you continue to develop your business. Call us at 787-756-3939 or 1-855-756-3939, visit our web page or meet with one of our specialists at any of our branches.
1Financing products, either through credit cards, lines of credit or loans are subject to credit approval