Getting Ready to Borrow

Wednesday, June 04 at 07:55 AM
Category: Business Banking

Whether it is the start-up or growth phase of your business venture, sooner or later you’ll likely need to borrow money. While every loan process may be different, there are several things you can do to make the loan process easier. Most importantly, while loan officers look closely at your financial record, there are many other things they will wish to see as well. 

Here are some good starting points for getting your loan approved:  

Think it through

  • Have you investigated all the alternative types of financial sources?
  • Does the term of the loan you are considering coincide with the purpose of the loan?
  • Does the amount of the loan match up with your expected cash flow?

Keep up-to-date records

  • Tax returns (company and possibly personal tax returns)
  • Financial statements (last couple of years and year-to-date)
  • Cash flow history and projection

Plan like a business owner

  • Do you have an overall business plan and is it current?
  • Does it include important information like major customers, suppliers and key employees?
  • Do you have a current marketing plan and are you following it?

Have good business practices

  • Do you have a credit policy and is it enforced?
  • Does your accounting system adequately show the condition and results of the business?
  • What is your accounts payable policy? How current are your receivables? Do you take advantage of any discounts for prompt payment?
  • What type of insurance coverage do you have? Is there adequate insurance for liability and property damage?

Do your taxes

  • Are all your tax filings current (payroll, property, income)?
  • Are your returns prepared by a qualified professional to help you ensure your tax benefits are maximized?

Summary

While applying for a loan can be a stressful experience, doing your homework and being prepared can create a much smoother process. Your Arvest Commercial Loan Officer will also aid in easing the process by becoming well-acquainted with you, your business, your industry and your goals. Call customer service at (866) 952-9523 to find the Arvest Commercial Loan Officer nearest you, set an appointment and even complete a loan application if you’re ready.

Tags: Arvest Biz, Business Banking, Lending and Financing
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