Whether you’re making new capital investments in your business or launching a new startup, a commercial loan can give you access to the resources you need. While the application process might be intimidating, a little preparation can help you get access to the funding you need. Below are a few tips for successfully securing a commercial loan for your business.

5 Steps to Successfully Applying for a Commercial Loan

1. Collect Your Financial Statements

Before issuing a loan, lenders will want a complete picture of your financial situation. Collect statements for both your personal and business savings and checking accounts, as well as revenue reports and your previous year’s tax returns.

2. Check Your Credit Report

Even though you’re applying for a business loan, lenders will check your personal credit history to evaluate your financial habits. Get a free copy of your credit report, check it over for errors, and report any mistakes immediately.

3. Prepare a Business Plan

Your application should include a comprehensive business plan demonstrating to lenders that you’ll be able to pay back the loan. The more thorough and realistic your business plan is, the better, so it may be worthwhile to have an accountant prepare it for you.

4. Write Your Letter of Intent

The Letter of Intent (or LoI) is your opportunity to show lenders that you have the experience to effectively manage the funds you’re asking for, and that you have clear goals in mind. In your letter, briefly summarize your intentions for the money, and explain why your business would be a worthwhile investment.

5. Find the Right Lender

Qualification criteria, interest rates, and commercial loan programs vary from one lender to the next, so investigate several options before choosing a bank. Smaller, local financial institutions may be more willing to work with you, and typically have more personalized service than large national chains.

Whether you’re applying for a commercial loan or looking for a mortgage, turn to the friendly professionals at First & Peoples Bank and Trust Company for the funding you need. They’ve been serving Kentucky’s Greenup County since 1932, with branches open in Russell, Flatwoods, Greenup, and South Shore, KY. Visit their website for more on their commercial loan options, get more tips and advice on Facebook, or call (606) 836-0211 with any questions.