When your business needs a little extra cash flow, apply for a commercial loan. River Bank in La Crosse, WI, has been providing first-rate banking services since 1991. Their commercial loans provide companies with the money they need to help grow their business or hire new staff. To boost your chances of being approved for a loan, it's important to know what steps to follow.
5 Steps To Apply For A Commercial Loan
1. Letter Of Intent
The first step involves establishing your reason for applying for the loan and sharing this with the lender via a letter of intent. A lender will want to know how you plan to use the funds. Whether you're using the money for startup capital or business expansion, you must be specific about your intentions.
2. Financial Statements
Next, you'll want to gather supporting documentation. If you're seeking funding for a new company, you'll need to provide financial records of the company's major shareholders. If your company has been in business for a while, provide a balance statement, profit and loss statements, and tax returns.
Do you have funding or investments that may be used to back your commercial loan? This is known as collateral, and it will improve your chances of getting approved, so list it with your application. Collateral includes property equity and savings.
4. Business Plan
A key aspect in applying for a commercial loan involves preparing a business plan. This plan should list the goals of your company and indicate the kind of future growth you expect from your business.
5. Different Lenders
Once you've completed all of these tasks, it's time to begin the application process. It's wise to consider several lenders, since different financial institutions have different guidelines for loan approvals.
Choose River Bank to enjoy competitive rates on commercial loans and service tailored to suit your unique needs. These banking and investment professionals provide you with all of the tools you require to secure a more prosperous future. Call (608) 788-6300 to speak with a representative, or learn more by visiting this leading La Crosse financial institution online.