Most business owners have wonderful ideas to help their businesses grow. The only obstacle is getting capital to actualize those ideas. Of course, the most common way to get funding is by going to the bank for a loan. Knowing what banks want increases your chances of getting financing. Take a look at some things you need to have when applying for bank business loans.

Business Plan

Although some banks may not ask for this document, the majority do. A business helps the bank know whether your business idea is practical and sustainable. Before you approach the bank, create a business plan first. In addition, this document isn’t just for the bank. You can use it as a roadmap to make business decisions.

Your Business’s Financial Details

When applying for a loan, the bank will likely ask about past and current loans and any debts you have incurred. It will also look at your balance sheet, cash flow, and income statement. This is to gauge whether you can repay the loan or the type of risk you present to the bank.


Hardly can you get bank business loans without collateral. The bank is taking a risk by giving you a loan. It needs assurance that it won’t go on a total loss if you don’t pay the loan. Some banks will only accept hard assets such as equipment as collateral, while others will accept accounts receivables. Either way, you need to have something the bank can use as collateral.

Personal and Business Credit Score

When you start a business, you must create a separate bank account. However, for a startup, the entrepreneur is the face of the business. Therefore, the bank may ask for your personal details to ascertain your reliability. A credit score will determine if you’re eligible for bank business loans.

Business Licenses and Permits

You need permits and licenses to operate a business. Banks will want to know that the government has permitted you to run the business.

With the right documents, it becomes easy to get a loan. At Monterey Commercial Capital, we are ready to provide your business with the capital it needs to grow. We offer different financing solutions to suit your needs. Call us today.