FDIC-Insured – Backed by the full faith and credit of the U.S. Government4 Things To Do Before You Meet with a Business Lender
| Posted in Bank Blogs
You’ve got a great idea for a new business. Or maybe you already have a business and have plans to branch out in a new direction or space. That’s exciting. What may not seem as thrilling is the prospect of meeting with a lender to help you get the money you need to carry out those plans.
Preparation is your greatest ally.
Here are some ways that you can put yourself in a better position to get the financing you need.
1. Be ready to talk [your] business. When you start a business, you’re often advised to have an elevator speech. It’s essentially a 30-second pitch about the value your product or service will bring to your target audience. When you meet with your lender, you’ll need to expand on that speech and provide some key details, including:
- Who you are, including your relevant business experience
- Why you started your business
- Who your products and services serve
- The need your business fulfills
- How your business is unique from others in the same industry
2. Create and bring along your business plan. Talking is one thing, but if you want a lender to grant you credit, you’ll need to share specific and formal details about your goals and plans. That’s why you need to come equipped with a business plan. Your business plan should include the following according to the Small Business Administration (SBA):
- A description of your company
- A market analysis of your industry and target audience
- The legal and organizational structure of your business
- Who will use your products and services
- Your marketing plans
- The funding you are requesting and how will you use it (i.e., salaries, inventory, equipment)
- Your financial projections, including your revenue projections
3. Bring your financial statements. Your lender will need to see financial statements for you and your business. These documents may include:
- Personal tax returns
- Business tax returns if you already have a business
- Financial statements for the business, including a balance sheet and income statement
- Personal and business bank statements
- A copy of your business license
- A copy of your driver’s license
4. Get your personal credit in order. Though you are applying for credit for your business, lenders will review your personal credit history, which demonstrates your creditworthiness. Your personal credit is especially important if you have a newer business that doesn’t have an established credit history. Before you meet with a lender, review your credit score to ensure there are no surprises.
We’re here to lend a hand
To talk to us about your business plans, call us or stop by your nearest branch.