Bring the Right Numbers and Plenty of Supporting Evidence When Applying for a Loan


A common misunderstanding by growing business owners is that their belief in their business is as easy to comprehend by any bank they walk into. The process of borrowing money can be far more involved, and particularly, more relationship driven. Not all banks are quick to hand out money to small businesses and startups. But now that you are an established business with a history of success, maybe even a line of credit you’ve been borrowing from and paying back, go get yourself a loan to support your future growth!

Knowing that not all terms for a loan are the same, you’ll want to be prepared for that first meeting to ask for a loan and you’ll want to see if there are better offers out there. Here are some of the most important pieces of information you need to have with you when you go in for your meeting.

Your overall business plan

Most banks aren’t going to loan money unless they have a solid idea of what that money is going to be used for and how they’ll earn their investment back. What sort of expansion or growth will this money allow for your business and how will it naturally lead to an ability to pay back the loan? And how long will your expected growth to take?

Numbers matters

In your business plan you’ll have some financial models – be sure those are vetted by you and your accountant. Be transparent about the drivers of your financial model and the metrics of those drivers. Share information about your customer size, your employee breakdown, your product margins, and where the money from the loan will be spent. Talk about the aging of accounts receivable, the time it takes to close the sale, and how you do your best hiring.

Don’t forget your history

A solid business plan is important, so be sure it’s backed by numbers. You or your accountant will need to prepare a portfolio of documents that include and demonstrate your past financial history, as well as any other relevant documentation that demonstrates your business acuity.  This should include balance sheets, profit & loss statements, customer lists and other key performance indicators you track. These documents serve the important purpose of backing up your claims and demonstrating that you have a proven track record of business and financial success – and reliability.  

Be prepared with references

If you followed the advice of our last blog, then you should already have a healthy, established relationship with the bank you’re hoping to borrow from. With that said, you’re still going to want  a number of reputable references that support your argument: your business has a long history of growth, handling money effectively, making payments on time, and making plenty of strong partnerships.

These tips aren’t all there is to securing a bank loan, but they can hopefully provide you with an excellent foundation for creating your own proposal that accentuates your business’ strengths while eliminating any doubt on the part of your bank.

Do you have your own tips or advice for securing a bank loan? We want to hear about it! Drop us your story or advice at

Checklists Are More Useful Than You Think
Whenever I can find the time in between all the... MORE
The Objective of a Board Meeting
We’ve had a number of clients over the years –... MORE
Bring the Right Numbers and Plenty of Supporting Evidence When Applying for a Loan
A common misunderstanding by growing business owners is that their... MORE
Going to Need a Business Loan?
As you grow your business, you’re likely going to run... MORE