This week for our Friday Q&A, we interviewed Jeff Potter, one of our customers, about his unique story within agriculture and his road to recovery after he was diagnosed with a debilitating illness. Jeff was great to talk to, and has a story that is inspirational for anyone in any industry.
We're continuing our #TuesdayTip series on tips for small business loan applications to help guide you on your process to getting approved for a commercial loan. Today's tip:
Demonstrate How You Intend to Use the Funds
"Lenders will need to understand why you’re looking for funds and how you intend to use the money. Working capital is rarely a sufficient explanation for an underwriter. For instance, instead of asking for $100,000 in working capital, if an applicant says they need $33,000 for inventory, $37,000 for new hires, $20,000 for enhancements to their location, and $10,000 for advertising, the credit provider will be much more confident in your planning and your ability to effectively deploy the funds. You will also need to be able to express how the loan will help the business and how it fits in with your overall plans for growth."