Loans from a Bank

Loans from a Bank. Tips and Advice on how to get a Bank Commercial Loan, America Bank Commercial Loan.

How do you get a bank commercial loan from a bank? Before you even consider this, do note that most banks do not lend to start-ups directly. If your company has no operating history and no supporting financial statements (balance sheets, profit and loss statement, cash flow statements), you would be deemed a fairly high risk prospect. Banks typically begin to offer loans to companies in their early stages of growth; these companies would have been in business for at least two years.

Still, it is important for you to establish a beneficial banking relationship, as you would still need the support of banks for day-to-day financial and operational routines: when you make or receive payments via credit card, write or receive cheques, wish to obtain lines of credit.

Bank Commercial Loan Documents

To get a loan from a bank, here are the documents you need to prepare:

  • Personal Tax Returns (at least over the past three years)
  • Personal Financial Statement
  • Business Plan
  • Cash Flow Projections
  • Business Balance Sheet (Current and Historical)
  • Business Profit and Loss Statement (Current and Historical)
  • Business Cash Flow Statement (Current and Historical)
  • List of inventory and equipment
  • Current Accounts receivable and current accounts payable

When you approach a bank, be sure to find out all of the following:

  • Business services offered (Credit card deposits, online transactions, checking accounts)
  • Possible advertising programs offered through the bank
  • Length of loan application process
  • What happens if there may be a temporary downturn in your business – how would the bank be willing to work with you?
  • Bank’s current management, and how long the bank has been in operation
  • How experienced your loan officer is – understanding of your business, your industry, of banking in general

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