What to Expect Before, During, and After Signing a Loan

Getting commercial loans can help you start or grow your business. The application process, however, can seem daunting to some business owners. The following information will help you anticipate everything you need to know before, during, and after finalizing commercial loans.

Before: Know What Types of Commercial Loans Suit Your Needs

Community banks typically offer three major types of commercial loans:

  • Commercial lines of credit
  • Commercial real estate and construction financing
  • SBA loans
Commercial Lines of Credit

Commercial lines of credit work well for businesses that need flexible funding solutions. Consider commercial lines of credit when you need to pay for new inventory, seasonal expenses, or business expansion.

Commercial Real Estate and Construction Financing

Commercial real estate and construction financing can help you buy existing commercial real estate, add to a building you own, or develop a new project. You might also use it to cover some of the costs of constructing investment properties and single-family residential homes that you plan to sell for a profit.

SBA Loans

SBA loans can give you favorable interest rates and terms because the Small Business Association backs them. Amounts vary from $250,000 to $5 million. You need to get SBA loans from an SBA Preferred Lender like Vinings Bank.

During: Gather Documents and Information for Your Commercial Loan Application

The documents you need to complete a commercial loan application depend on several factors, including the type of loan you want and how long your business has been operating in the Atlanta area.

The SBA sets relatively high requirements. Following them should make it easy for you to answer most of the questions your lender will ask.

During the loan application process, make sure you have:

  • Tax returns for at least the last three years (ideally business returns, but personal returns can work, too)
  • A current balance sheet
  • A profit and loss statement
  • Breakdown of your anticipated costs
  • Your personal financial statement

If you have any questions about applying for commercial loans, you can contact Vinings Bank for help.

After: Repay Your Loan as Planned

After you secure a commercial loan, your lender will give you a breakdown that shows exactly how much you need to repay and when you need to make those payments. As long as you follow the schedule, you can build your business’s credit rating, avoid penalties, and potentially qualify your business for low-interest loans in the future.

Disclaimer: Vinings Bank has made this blog available solely for informational purposes. Its content is general in nature and does not constitute professional advice. Furthermore, the views expressed in this blog are not necessarily those of the bank, and Vinings Bank does not make any representation or warranty as to the accuracy or completeness of the information contained in this blog. Any liability, therefore, is expressly disclaimed. The information in this blog may not be current, and Vinings Bank does not undertake any obligation to update such information. No part of this blog may be reproduced, redistributed, published, copied, or duplicated in any form without the express consent of Vinings Bank.