Five Questions to Answer before Approaching a Bank for a Commercial Loan

July 24, 2019

When you are ready to apply for a commercial loan, be prepared to answer a lot of very important questions about your business. The initial information you give to a loan officer will provide him or her a general idea as to whether your request is something that their particular bank would be able to approve. It also shows that you have given your loan request some thought before you come in to visit with the loan officer about your business needs.

We are often asked about the best way to prepare for an initial visit with a Commercial Loan Officer. Here is our list of the Top 5 Questions we ask during a business loan exploratory meeting.

1. What is the purpose of this loan request?
2. What dollar amount do you need for your loan request?
3. What length of term do you need to repay the loan in monthly installments?
4. What entity will the name of the loan be under? (New or Existing Entity)
5. What type of collateral will you be able to pledge for the loan request?

It is also important to call ahead to schedule your meeting with a Commercial Loan Officer before going into your local branch.  This ensures you get to visit with the appropriate lending officer for the type of loan that you need. This also allows the loan officer to block adequate time to visit with you and talk about your loan request. The key to success with business lending is to establish a relationship with your banker so that he or she becomes familiar with your business goals. This relationship will help guide the future of your financial needs.

Don’t Wait for Desperate Times to Secure a Loan

Business owners often turn to commercial loans in times of hardship but hesitate to seek funding when business is good. Consider applying for a loan when your market sector or industry is booming because lenders will be more confident about your potential success. Our small business and commercial loans offer competitive rates of interest and payment schedules designed to meet the differing needs of our customers. We also provide the flexibility your business needs for short-term expenses like payroll, inventory purchases, or working capital.

All Loans Subject to Credit Approval