Step 1: Prequalification

Ask yourself the following questions:

1. Do I have a personal credit score of 650 or higher?
2. Do I have sufficient personal or business assets equal in value to the amount of the loan that I can offer as collateral?
3. Do I have adequate cash flow to repay the loan obligation each month?
4. Do I have the knowledge, experience, and dedication to make my business successful?

Please consider these tips regarding the small business loan application process:

• Consider your proposed small business project. Does the project and the business loan make sense?
  In doing so, give a prudent consideration to how the funds will be used. Typical uses for most small businesses often include:
  • Land acquisition
  • Building acquisition
  • Equipment purchases
  • As working capital
  • Inventory purchases
  • Refinancing of other debts
• Consult with outside resources which may assist you with preparing your financing request. Many of these can be found in our Small Business Resources section under links.
• Use BCI Lending as a resource as well, especially for help regarding the financial operations of your business and proper use of the funds to be borrowed; we have many years of experience and love to help small businesses succeed.
• Check any financial projections and supporting financial data to ensure that they are realistic and attainable.
• Ensure that your company's balance sheet is structured properly. In particular, note short term loans for working capital and longer term loans for debt refinancing and purchase of fixed assets (land, buildings, and equipment.

If you answered "Yes" in response to all of the questions above and have considered the helpful tips above then please proceed to Step 2: Proposal/Term Sheet