Applying for Business Financing

By Ryan Lynch 
Vice President, Business Banking

As a business banker, I have had many conversations with business owners at various stages of their planning. One of the most common questions I hear is, “What do I need to know before applying for a loan?” In this article, I will walk through what to bring to your first meeting, what the bank evaluates during the financing process, how to plan for growth, and how to choose the right banking partner for your business.
 

What to Bring When You Apply for Financing
If you are launching a new business, financial projections are especially important. These help us understand what you expect in terms of revenue, costs, and profitability over the next 12 to 24 months. The more thoughtful and realistic your projections are, the more helpful they become in evaluating your financing request.

It is also important to bring your business plan. This should outline the full scope of your business—including what you do, who your customers are, how your operations will run, and how you plan to grow. The format does not need to be elaborate, but the content should be clear and strategic.

We will also ask to review your personal and business tax returns from recent years. These provide a look into your financial history and demonstrate how you manage income and expenses. Additionally, a business debt schedule will be helpful, outlining any current loans, leases, or financial obligations tied to the business.

Lastly, we will request a Personal Financial Statement (PFS). This document outlines what you own and what you owe personally. It allows us to assess the financial strength behind the business and is a routine part of the loan application process.

What We Look at During the Financing Process
At North American Banking Company, we evaluate each financing request individually. Our approach is not just based on financial figures, but also considers the broader picture of your business and your goals.
We will examine your personal credit score, financial projections, and personal cash flow. We will also look at your industry and how your business is positioned within that space.

Your online presence and reputation are also considered. This includes business reviews and social media activity. While these factors may seem unrelated to financing, they often provide insight into your customer relationships and community engagement. Once we have reviewed all relevant materials, we compile them to determine how best to structure the loan. Every financing situation is different, and we work closely with each client to tailor a solution that meets their needs.

Planning for Growth
A growth plan often begins with strong financial projections. These allow you to map out your trajectory and understand what resources will be needed to achieve your goals. If you anticipate purchasing equipment, expanding your facility, or making other significant investments, financing can be a valuable tool. Partnering with a bank that understands your objectives can help preserve your cash flow while enabling strategic growth.

At North American Banking Company, we are committed to supporting businesses at every stage. We are built to grow alongside our clients and offer the experience and flexibility to do so.

Choosing the Right Bank
Selecting the right banking partner is an important decision. It is essential to work with a bank that is easy to do business with and responsive to your needs. 

Trust your initial impression. A banker who listens, asks thoughtful questions, and shows genuine interest in your success can make a significant difference. First impressions matter, and at North American Banking Company, our goal is to create a welcoming and professional experience from day one.

Our team is local, knowledgeable, and empowered to make decisions. When you work with us, you will speak with people who understand your market and care about your success. Not a call center or an unfamiliar office in another state.

Let’s Talk About Your Business
If you are preparing to apply for financing, begin by gathering your projections, business plan, tax returns, and financial statements. Understand that your bank will evaluate both financial data and your business goals. Also, consider your long-term plans and how your banking relationship can support your future growth.

When you are ready to explore financing options or simply want to start a conversation with a bank that takes the time to understand your goals, I would be happy to speak with you. Let’s sit down, review your plans, and discuss how North American Banking Company can help you move forward. Please don’t hesitate to contact me rlynch@nabankco.com.