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Qualifying for a Small Business Loan

In many cases a business can only grow to a certain point before requiring financing to reach the next level of success. Typically, if you own or manage a small business, this is done through a loan.

The commercial loan application and approval process can seem like a daunting task for many business owners. Lenders evaluate your company for its credit worthiness, financial history, and collateral when making their decision. Some businesses may not meet these standards and therefore may not qualify for the loan. Many banks and other lenders often gear their selection toward big or established businesses, so if you're just starting out or relatively new, securing financing can be a challenge. Fortunately, Ion Bank has a Business Banking unit devoted to addressing the specific needs of small business owners.

If You're Just Starting Out

A business that is just beginning or hasn’t even opened its doors yet might consider a Small Business Administration loan. The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA helps Americans start, build and grow businesses. The SBA connects you to one of its lending partners, rather than backing the loan themselves. Ion Bank is an SBA Preferred Lender.

To qualify for the loan, you need:

  • To demonstrate good credit among all business partners. Low personal credit scores and a history of bankruptcy or overdue payments can disqualify approval of a business loan.
  • To prepare financial statements, including past balance sheets, statements showing income and cash flow, tax forms, and reasonable projections for your growth, supported by research.
  • A resume showing managerial and business experience.
  • A detailed outline showing projections and how you plan to use the loan.

If You’ve Been in Business for a Few Years

If your company has already been in business for some time, you might want to try applying for a small business loan through a bank. Here at Ion Bank you will be asked for the following information or documentation:

  • How you plan to use the loan proceeds
  • Financial statements and Income Tax Returns
  • Details about your current business debt and creditors.
  • Profile describing ownership and the key members of your management team

Need a business loan to advance the future of your company? Explore your options with Ion Bank. To learn about our programs, please contact us or stop by any of our locations today.

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