Virtually every small business will need to borrow funds at some point to propel its growth. It shouldn’t be a case of “I’ve got to avoid all debt,” but rather, “I need to put gas in the tank to drive further.” A bank loan can be an important loan source. 

Why a Small Business May Need to Secure a Bank Loan 

There are many reasons to secure a bank loan including expanding a business, increasing inventory, recruiting and hiring more employees, improving a business’s cash flow, moving a business to a different location, expanding a business’s facilities, improving its marketing activities, overcoming unpaid invoices, and acquiring or updating equipment.  

Types of Business Loans to Secure 

It is important for a business owner to choose the right kind of business financing so that you don’t waste your time or the banker’s time. Here are some of the common loan types: 

Business term loan. 
Line of credit. 
Commercial mortgage. 
Equipment lease. 

Additional loan sources include getting an SBA loan through a bank or credit union that is partnered with the SBA, obtaining a loan from an online lender, alternative lender, or lending specialist organization. 

How to Get a Bank Loan 

First, it is important to develop a strong working relationship with a banker before you need to apply for a loan. 

Second, carefully define the purpose of the loan you are seeking, and be sure that you’ve run the numbers to identify the amount you will need to borrow. 

Third, develop a solid business plan and be prepared to share it with the banker. 

Fourth, review your credit score. 

Fifth, prepare to provide collateral if that will be required. 

Sixth, get your financial statement in order and be able to demonstrate positive cash flow and your ability to repay a loan. 

Seek Professional Financing Assistance 

To get the funding you need to finance your growth dreams, contact First Class Lending. We can provide customized financing solutions to meet your needs.