Feb 15
What to evaluate before applying for a business loan
February 15, 2022
Access to capital is fundamental to growing your business, whether you want to get a larger location or want to expand your operations. Business loans are useful tools to achieve these goals. If you’re considering applying for a commercial loan, it’s best to be well prepared before heading out to the bank.
Having your information well organized will allow you to submit a more robust application to the financial institution, help you assess your business, and even make you reflect on your business plan for commercial success.
These 7 steps are crucial:
- Have a good purpose
- Go to the right entity
- Apply for the loan that best suits your business
- Gather the necessary documentation
- The income tax return of the last two (2) years
- Financial Statements for the last two (2) years. Must include an Interim Statement for the current year, a Balance Sheet Statement and Statement of Income and Expenses.
- Accounts receivable and accounts payable reports
- Projections of income and expenses for the next two (2) years of operations
- Copies of contracts from your leading clients
- Patents and any other proprietary information
- Review your business plan
- Description of the business
- Marketing strategies
- Competitive analysis
- Development plans
- Operations
- Administrative plan
- Key employees
- Financial information