What to expect when applying for a business loan


Knowing what to expect when applying for a commercial business loan makes the process easier and faster for you.

When you apply for a business loan an underwriter will ask lots of questions—and this makes sense. Loans at Consumers are from deposits made by other members. Of course, we’re going to be careful with lending decisions. We’re also going to do everything we can to help you get the business loan you want!

Here the basic things Consumers underwriters look at when you apply for business loan.

What’s your plan?

Before extending a loan, any lender will want to know about your business plan. Be prepared to explain your:

  • Strategy: What do you do?
  • Tactics: How do you do it?
  • Timing: When does it get done (and who does it)?
  • Business model: How do you make money?

You’ll also need to describe your product or service, the market you serve, your team and finances. (More on finances below.)

What kind of collateral do you have?

Underwriters look at your assets, which can include buildings, equipment, inventory and accounts receivable. You may also be able use personal assets—­­like home equity—as collateral for your business loan.

What’s your credit score?

For most small businesses, underwriters look at the owner’s personal credit score. A business credit score may also be factored in. Credit scores are used to evaluate trustworthiness based on your repayment history and overall debt.

Let’s look at your finances …

During the application process, your underwriter must determine your ability to repay the loan. That’s why he or she will ask for documentation of your finances. This can include business and personal tax returns and bank statements. They’ll also request reports like financial statements, accounts receivable and accounts payable.

We’re here to help

Please don’t feel like you must have all your documentation together before you come in to talk with us. Consumers business development managers and underwriters are here to answer questions and help you through each step of your business loan application.

Plus, at Consumers all lending decisions are made locally. We’re proud to support hundreds of business loans in West Michigan. Contact us today to discuss your business loan needs by calling 800.991.2221 or emailing businessservices@consumers.org.

Do you have questions about our business banking services? Contact our knowledgeable business development managers or call 800.991.2221. We’re here to help you grow your business!

Federally insured by NCUA

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