How to Get a Business Loan from a Local Community Bank
Obtaining a business loan in today’s economy can present a very challenging situation for businesses as well as the big banks of the world. However, community banks can bridge the gap for business owners and help solve any financial crunch within the business.
When visiting a local community bank be sure to have a detailed financial package ready to give to the loan officer so they can see how your business is doing. If you make assumptions in your financial package you must be ready to explain the numbers in a clear concise manner. So it’s important to make sure your financial package is represented with clear and achievable numbers. Also, show the loan officer your historical financial statements so they can get a clear picture of viability in your business.
Another thing to bring to show your local community bank loan officer is a detailed business plan in what you want to do and how you plan on achieving those goals. Be realistic in your strategies so your plan doesn’t seem unachievable to the loan officer.
If possible try to eliminate your personal debt so the loan officer can see that you are financially sound and responsible. This will work in your favor if you’re trying to get a business loan because they will look at your personal credit to determine a risk analysis and determine if you’re responsible and would pay back a business loan.
Be honest with the loan officer don’t give them just the positives in your business. You should present the negative as well and explain how you’re overcoming those issues. This will give the loan officer a clear picture of your business and being honest upfront might help make a determination easier for the loan officer.
Also, when you visit a local community bank come dressed as if you’re going to an interview and look at the loan officer in the eyes when talking. Be prepared to answer questions honestly and in detail to the loan officer. Don’t make stuff up because the loan officer will find out eventually if you have a sound business plan and financial package.
The last thing you can do is explain to the loan officer that you are willing to switch your personal and business accounts to their bank if they’re willing to give you a loan. This can help give you an advantage if you’re serious and sincere. Always be honest and prepared to explain your operations in great detail. Don’t respond to questions with a yes or no without explaining in detail.