Central Region: Local Resources

         

LOAN APPLICATION PROCESS

Now that you have developed a winning business plan, you will need to obtain funding for your new business venture. Presenting your bank with clear and consise information will help you be successful in acquiring the necessary loan financing.

Who should write it:

  • Business Owner
  • Accountant
  • Business Advisor / Consultant

Who should present it:
  • Owner / President / CEO
  • Use accountant's / advisor's / consultant's technical backup

How to present the loan application to a lender:
  • Person-to-person (appointment)
  • Subsequent modifications or correspondence
  • By mail only after meetings or phone conversations

Business loan assessment:
  • Past business experience
  • Lender's relationship with you
  • Ability to pay
  • Collateral
  • Personal guarantee
  • Other sources of capital
  • Key success factors in your industry

Planning the loan application - Critical questions to answer:
  • How much money is needed?
  • Why is the money needed?
  • How will the money be used?
  • How long will the money be needed?
  • How will the money be repaid?
  • When will the money be repaid?
  • How will the loan be secured?
  • Am I willing to personally guarantee the loan?
  • Is there any other way to raise all or some of the money needed?

Please feel free to contact your local SBTDC to get answers or receive further information on the loan application process.