Beginner's Guide to Small Business Loans

Wednesday, August 16, 2017
Posted by admin under Commercial Loans 

Small business loan application

In order to start or grow a business, or sometimes just keep the doors open and the lights on, many small business owners will need a loan. Some turn to family or friends, some find investors, some talk to a local banker about a small business loan in Vermillion County, and others seek an SBA loan.

Getting a loan can be a hurdle that takes time and causes stress, but knowing what to expect and understanding the process can reduce frustration. When you need a small business loan, here's some basic information that may help.

Why Do You Need the Money?

This is one of the first questions any lender is going to ask, so have a clear, specific answer ready. Be sure you include the benefits to the business.

What Type of Loan Should You Get?

The underlying reasons for the loan will help determine the type of loan you get. If this is a new startup, getting a loan will be difficult. Rather than look to traditional lenders, you'll need to have your own source of funds, such as personal savings. If you don't have enough money saved, you may have to borrow from family and friends, take out a personal loan, seek investors, consider a microloan, check out online lenders, try crowdfunding, or use credit cards.

You have more options if you're buying an existing business or if your business already has more than a year's history of revenue and expenses. In either case you might be able to leverage the accounts receivable, get a line of credit, get a small business loan in Vermillion County, IL, or qualify for an SBA loan.

Shop for the best loan. Determine the lender and financing most suitable for your situation. Compare small business loans in Vermillion County based on the total borrowing cost and terms. Make sure you can handle the payments, then choose your best option.

What Documents Do You Need?

If you apply for a small business loan, most lenders will want the following documents:
  • Business and personal tax returns (for prior 3 years if available)
  • Business and personal bank statements
  • Business financial statements (balance sheet, income statement, cash flow)
  • Business legal documents (Articles of Incorporation, business license, commercial lease, franchise agreement, contracts)
  • Business Plan (the Small Business Development Center located at DACC can assist you)
Applying for a loan may not be a lot of fun, but getting a small business loan in Vermilion County and getting your business on a sound financial footing and on track to meet your goals is rewarding.

Tagged Small business loans  loans Vermillion County  small business loan  0 Comments

Tips for Landing a Business Loan to Fund Your Startup

Monday, May 22, 2017
Posted by admin under Commercial Loans 

If you're looking to start a business, you're likely faced with one big factor that's hindering your leap into business ownership--money. Getting the funds to start your business can be tough, and trying to get a loan from a mortgage lender in Vermilion County is a very daunting prospect for many first-time business owners. If you find yourself searching for a small business loan, consider these tips for getting the funds you need.
Business Loan

Be Passionate

When presenting your case to a loan officer, you may be tempted to seem apathetic about whether or not you get the loan; after all, desperation is not a good look on anyone. But this is far from the right approach. When it comes to small startups, many times, it's the passion of the owner that pushes it through those difficult first years and turns it into a success. You need to exude the kind of passion that can overcome any obstacle and make your dream a reality. That's the kind of passion that gets funding.

Know Your Stuff

Of course, being passionate is far from the only thing that matters when it comes to getting a business loan. Lenders want to know that you've done your research and have the knowledge needed to get this company off the ground. That means testing the market for your product or service and proving that there's a demand for it, as well as finding out how many competitors there are nearby. A history of working with successful startups can also be extremely helpful; banks aren't likely to throw money at someone who is untested in the world of business.

Sort Out Your Finances

Get your personal finances in order before asking for a business loan. Lenders want to know that the person they're giving money to is capable of managing finances responsibly. So you need to pay down your debts and improve your credit score as much as possible before asking for that loan.
A Startup Company Meeting

Think Local

Banks have a lot of investment opportunities in front of them, so it's going to be tough for you to grab their attention. Local lenders, on the other hand, are more likely to hear you out and consider your application. But perhaps more importantly, these lenders also have a vested interest in improving the community and local economy by supporting the growth of new businesses. Your startup may be exactly what the community needs to bring in more jobs and bring more money to the area. That's always a good thing for local banks.
Keep these tips in mind when you start applying for small business loans in Vermilion County, IL and you'll be much more likely to succeed.

Tagged business loan tips  get a loan  Small business loans  startup loans  0 Comments

Options for Financing Your Small Business Marketing Plan

Monday, August 8, 2016
Posted by admin under Commercial Loans 

From your local A/C repairman, to the legendary barbecue joint that's only open three days a week, this is the golden age of owning and operating a small business. Startups are happening left and right, and there’s no stopping them...that is, with the proper financial backing. Whether you’re just getting started, or your small business has been around a while and just needs a face lift, financing your small business marketing plan can feel a little daunting. There’s good news, though! There are a few strategies that you can utilize to help make those dreams continue to succeed, including obtaining small business loans in Vermilion County

Catlin Bank - Need a Loan?


Product Pre-Sales

Depending on the type of business that you run, offering product pre-sales for a different branch of your business, or even just to get yourself off the ground, is a great place to start. The key in product pre-sales is to stay intimate and connected with your clients throughout the process, communicating the production and distribution times to them, and making sure that they receive the product in a timely manner. This option can have several logistics to carefully balance, but it can also serve as a huge financial boost to your campaign.


A Small Business Credit Card

There are business credit cards specifically tailored to small businesses that could work in your favor to help you with your first line of production. This option is a great fallback if other routes don’t work out, or works great to provide some cushion room for picking up any slack that your other financing efforts may leave, but as always in approaching credit to finance anything this option should be approached thoughtfully, with all the fees and payment deadlines well-considered.


Selling Personal Assets

Not everyone has a spare vehicle lying around, but selling a major personal asset or two could certainly provide the funds you’re looking for to launch that new campaign. Perhaps you have a boat, a lake house, or even a mobile home that you don’t really use. Make these things work for you instead of wasting space.



This route may seem counter-intuitive to financing a major marketing campaign because it requires advertising in itself to be successful. However, depending on the type of small business that you have, if you really don’t have the funds to spark your marketing campaign, using crowdfunding allows the significance of the product to speak for itself and get new potential buyers and investors excited about what you’re doing.

Catlin Bank - Business Loan Button

Applying for a Loan

This is the most obvious solution to your small business marketing needs, and in several ways a level of ambiguity is removed when you get approved for a small-business loan instead of attempting other methods of financing your business. This requires you to have a for-profit business, and for you to be able to demonstrate how your business makes money. If you can do that, you may be able to get the money that you need all in one go.

No matter what you decide to do, make sure you research all of your options thoroughly and ask for advice and direction from the experts. Financing any aspect of a small business consistently, especially in the beginning, can be incredibly daunting. If you're an entrepreneur you know that there's no gain without a little strain from the risk, and that in the end that risk is worth it.

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