For businesses getting ready to borrow, read this!

How to prepare before applying for a business loan

At The Bank of Missouri, your lender will help guide you through every step. We’ll review the available loan types and terms and answer any questions you have. Read on for what to have ready and what to consider before applying.

Documentation

Plan to have the following available:

• Financial statements, tax returns, and debt schedule (also for principals if different from borrower)
• Business plan and projections, if in business less than 24 months or undertaking a large expansion
• Current rent roll, if multi-tenant rental property
• Entity organization documents, if applicable

Business plan

If you’ve been in business less than 24 months or are undertaking a large expansion, a business plan is a great way for your lender to get to know your business.

• Do you have an overall business plan and is it current?
• Does it include important information like major customers, suppliers, and key employees?
• Do you have a current marketing plan?

Business practices

Review some common business practices as you prepare for a business loan.

• Do you have a credit policy and is it enforced?
• Does your accounting system accurately reflect the financial condition and performance of the business?
• What is your accounts payable policy? How current are your accounts receivable? Do you take advantage of any discounts for prompt payment?
• What type of insurance coverage do you have? Is there adequate insurance for liability and property damage?

Taxes

And last, ensure you’re good-to-go regarding taxes.

• Are all your tax filings current (payroll, property, income)?
• Are your returns prepared by a qualified professional to help you ensure your tax benefits are maximized?

As you prepare, reach out to our lending team anytime. We’re here to help! We look forward to learning more about your business and goals and discussing which loan options can fuel your growth.