Apply for a Loan

Applying for a Business or Nonprofit  Loan

When to Apply for a Loan

There are many circumstances under which it makes sense to take out a loan. These include:

• Replacing existing costs – Taking out a loan to buy a building. The loan payments replace the rent or lease payments you were making previously.

• Bridging a gap – You have been promised a grant in the future. A loan helps you pay your expenses until the grant payments start arriving.

• Increasing revenue – Provided that the increased revenue is sufficient to cover the cost of the loan, i.e. the loan payment. Starting or expanding your business.

Before Applying

• Check your credit history to make sure you don’t have any outstanding judgments or collection accounts.
• Make copies of your personal and business tax returns for the last two years.
• Figure out how much money you need for your business. If applicable, identify a location for your business and/or get estimates for any work you plan to get done or equipment you plan to buy using the loan.
• Make sure that your financial records of your business are in order.
• Update your resume.
• Complete or update your business plan.
• Call several banks to find out where you can get the best terms.