Most small businesses in America need a business loan at some point. Whether it is to buy new equipment or have access to an operating line of credit during the slow months, business lending is a regular part of maintaining your business in today's economy. If you have ever wondered what you would need to get a loan for your business, you have come to the right place. Below are four important things you will need before you meet with the bank and why.
Montana Registered Business
The first important item is registering your business with the Montana Secretary of State. This is a requirement to do business in the state of Montana as well as to obtain a business loan. Montana is a unique state with lots of small businesses and the SOS website is a great resource. You can also use this website to file your annual report, renew your business license, etc. Signing up for your E-Pass with the state is where you begin. This site gives you lots of need-to-know info for conducting business in Montana.
A second item in getting a business loan relates to history. This takes into account both you personally, and the history of your business. It is rare that a traditional lender will write a loan for a brand new startup so we typically look for at least a two-year operating track record. We are looking to see if your business is a good investment for the credit union. We analyze the business cash flow, operating expenses, and the collateral being offered by your business.
Third, current financial information is required for the business and any majority owners of the business. This includes tax returns, financial statements, credit reports, accounts payable and receivable aging reports, inventory listings, collateral information, etc. The more prepared you are, the smoother the process is. There is a helpful checklist available from RMCU to help you navigate the world of getting a business loan. Click here to check it out.
Your Business Plan
Finally, a business plan is important and sometimes required, to include with your application. The Small Business Administration has a great article on how to write a business plan. This is all a part about getting the vision and larger picture of where you are and where you want to go. This little discipline for business owners often separates the businesses who thrive from those who only tread water..
Ready to Go?
If you have these items ready to go before you start, you will begin ahead of the game. Review the checklist above to see what accompanies these four important items when seeking a business loan. For more information on business loans and services, please contact Alan DeWit or Connie Robinson today.
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