How to Get a Loan for Your Business
When it comes to getting funding for your business, loans are an important tool to get the financing you need to operate and grow. Businesses of all kinds from small businesses to franchises to nonprofit organizations to government contractors and more can greatly benefit from a loan, especially when that loan is provided by a financial institution with a strong record of delivering for businesses in your area.
Now, getting a loan isn’t as simple as walking into any bank and asking for money. There are applications that need to be filled out, conversations that need to be had, and approvals that need to be given. At John Marshall Bank, we strive to make every step in the loan process as easy as possible for both us and you. So, we’ve boiled it down to three broad steps: Identify, Prepare, and Apply.
Step 1: Identify
The first step in getting a business loan is to identify what you need the loan for. It could be something like major renovations, expanding your business, funding working capital, upgrading your equipment, or even buying another business. Once you’ve determined that, you can identify the loan amount you need and the type of loan you want. If you’re having trouble figuring out the exact amount or type of loan, there’s plenty of resources out there to help, but we recommend reaching out to our team, who can sit down with you and work it out.
While you identify your loan amount and purpose, you should also identify your collaterals and your credit. These are both key factors in determining whether you get approved for a business loan or not. You want to be sure that you have good credit, which you can learn to improve by clicking here.
Step 2: Prepare
Now that you’ve identified the important details of your loan, it’s time to prepare the documents you’ll need during the application process. These documents can include:
- Tax returns from the past 2-3 years.
- Financial statements like year-to-date profit and loss statements, balance sheets, and cash flow statements.
- Personal and business bank statements from the past 3-6 months.
- Legal documents like your Employer Identification Number, business license, article of incorporation.
- A detailed business plan that includes past data, present performance, and future projections with the data to back it up.
- And more documentation as required by your lender.
Step 3: Apply
The final broad step in getting a business loan is to actually apply for one. Once you’ve chosen the financial institution you want to apply for a loan with, contact them about their application process and they’ll provide the details.
We recommend you reach out to us, but we understand that if you’re not in the DC Metro Area, you may need to seek out a different bank (we’re not offended, we promise). When you do so, it’s important to remember that when you take out a loan, you want a financial institution that views you as a partner and not just a number. This way, when you have questions or need further financing, you’ll be able to reach out to them with little hassle.
Beyond the Loan: the JMB Difference
At John Marshall Bank, our approach to financing hinges on our relationship-centered approach to all banking. When you take out a business loan with JMB, we take the time to learn about you and your business while working directly with you to provide the best financing option available. We have lending solutions geared towards all kinds of businesses including SBA loans, commercial real estate lending options, standard term loans, and more.
We also work with you throughout the term of your loan, providing protection against fraud and avenues for your business to grow, and celebrating your successes. When you bank with JMB, you truly are a partner. Don’t just take our word for it, check out testimonials from our clients who experienced the JMB difference firsthand.
