Title: How Do I Know If My Michigan Small Business Is Ready for a Business Loan?

If you’re thinking about expanding your business, purchasing equipment, adding employees or simply creating more breathing room in your cash flow, you may be asking a common question: Is my business actually ready for a loan?

The answer isn’t based on one number. At Bank Michigan, we believe it starts with understanding the complete picture of your business—and where you want to take it.

What Will a Bank Look at Before Approving a Business Loan?

Your banker will typically want to understand your business’s financial health, including revenue, cash flow, existing debt and your ability to comfortably manage an additional payment. Depending on the loan, you may also be asked for financial statements, tax returns, business plans or projections.

But numbers only tell part of the story.

Your time in business, industry, reason for borrowing and future plans can all help your banker understand what type of financing may make sense.

Do I Need Perfect Credit to Get a Business Loan?

Not necessarily. Credit is an important part of the lending process, but it’s one piece of a larger financial picture. Instead of assuming you won’t qualify, start the conversation.

A local banker can help you understand where your business currently stands and what you may need to work on before applying.

When Should I Talk to My Banker?

Before you need the money.

One of the best times to build a relationship with a business banker is when things are going well. If you know you may need new equipment next year, want to purchase a building or anticipate seasonal cash-flow needs, start planning early.

Having those conversations ahead of time gives you and your banker an opportunity to look at options, prepare documentation and create a strategy rather than scrambling when an opportunity, or unexpected expenses arrive.

At Bank Michigan, we believe business banking should be a conversation, not just an application.

Ready to talk about what’s next for your business? Stop by and visit a local Bank Michigan banker in Ann Arbor, Onsted, Brooklyn or Manchester.

Better. Thinking. Banking.™