Make life smooth. That’s the ideal. You won’t achieve it perfectly, but we can help you get a lot closer to it. When you get approved for a working capital loan in Minnesota, you don’t just receive a short-term cash infusion. You establish trust with a partner who can help you maintain smooth and prosperous business operations for years to come.
Partnerships are powerful. A great relationship with the right bank can help with your immediate needs, while laying a foundation for your future.
Whether it’s providing a business line-of-credit, strategic financial consultation, or a customized loan, your lender can provide working capital solutions that involve far more than a one-time, short-term loan. Your lender can be an financial expert who stays by your side.
The approval process for a working capital loan is an important step in a larger process: building the trust that a mutually profitable partnerships needs.
Some lending institutions, like Security Bank, focus on making their loan approval process efficient, simple, and transparent. Still, by preparing in the following ways, you’ll help us make the process as smooth as possible.
5 steps to a smooth working capital loan approval process
- Have financial statements that are organized, detailed, and up-to-date.
This is vital. You may need to visit your accountant before applying for a working capital loan. If your bank’s underwriters receive an organized, accurate picture of your finances, the process of assessing your application can move quickly.
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Be clear about your goals.
Know why you need a loan. This comes both from studying your business’ well-prepared financial statements and from developing a business strategy.
Usually, your lender will look for clear and specific business needs. This allows your bank to help you find the working capital solutions that will best serve your business’ big picture. Clarity about your purpose also facilitates an efficient approval process.
If you business strategy could use some refinement, you might want to consider talking with a business coach.
The right banker can also be a valuable consultant. A solid financial plan is at the heart of any successful business strategy. If you’re not certain about your goals, your lender can still help.
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Know how a lender will assess your business.
Your business is unique, and a lender will look at many factors when considering your loan request. Be aware, though, of some of the things that typically affect the amount your bank will be willing to lend you, like your revenues, years in business, and collateral.
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Check your credit score.
Bad personal credit won’t necessarily keep you from getting a working capital loan, but it can keep you from getting a good one. You want to cover your daily operations without sacrificing the long-term financial health of your business.
Some lending institutions offer, or even focus on, loans to business owners with poor credit. This, of course, means you’re likely to pay extremely high interest rates.
You want to grow your business on a strong foundation, so don’t sacrifice the long-term for short-term credit. You want your business to be prosperous for years to come.
Every business’ situation is different, so talk to lenders, an accountant, or other consultants who can give you sound advice. A bank that wants to build a relationship with you will give the time and attention to making sure the loan you receive is one that will help you thrive.
In some cases, it may be better to strategize ways to first improve your credit before receiving a loan. If so, this can still be the start of a valuable partnership with your bank.
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Learn about support from the government and other organizations.
Your community is invested in your success. When small businesses thrive, everybody benefits. That’s why your local and state government and other organizations support small business growth.
Before applying for a loan, learn about these organizations and programs. They may play a role in the options available to you.
The Small Business Administration (SBA) provides financial guarantees to lenders who make small business loans. This allows lenders to consider financing businesses that carry more risk, particularly new ventures.
In Minnesota, financing programs are also offered through the Minnesota Department of Employment and Economic Development, the City of Minneapolis, and the City of St. Paul.
A working capital loan: one part of a working partnership
The loan approval process is about relationship-building. Your lenders study your business. They learn your current strengths and identify the ways they can help. They make sure you’re prepared to meet the financial obligations you intend to undertake. It’s a part of building the trust that can lead to a powerful long-term partnership, not just a short-term cash infusion.
Security Bank & Trust Company specializes in relationships. We’re eager to support the small businesses who provide jobs, innovate, and help make Minnesota a great place to live. We want to get to know you, so we can provide the customized solutions you need.
We make the loan approval process as simple and efficient for you as possible. That’s part of how we can help make running your business profitable and satisfying.
Contact us today. We’ll think creatively to find the right working capital solutions for your business. We’re here to invest in you.
