Applying for a Commercial Loan: A Step-by-Step Guide

Getting a commercial loan can help you do a number of different things for your business. You could expand your business, start a new business, or purchase necessary items for your business. Regardless of what your plans for the money are, you will need to first apply for a commercial loan. Here are the basics of applying for a commercial loan.

Find a Lender

In order to apply for commercial loan, you will need to find a lender that you can work with. When looking for a commercial loan, you should do your best to shop around a bit. You do not want to simply walk into the first commercial lender that you find and start working with them. You need to shop around to make sure that you are getting the best deal on interest rates as well as closing costs. Be sure to check out two or three lenders in your area before deciding on a lender. You might also want to consider looking at some online commercial lenders as well. This way, you will make sure that you are not missing out on any opportunities.

Contact the Lender

Once you have identified a lender that you would like to potentially work with, you need to let them know that you would like to apply for a commercial loan. You should contact a loan officer with the company and discuss your options with them. They will give you a basic outline of the application process and let you know what you will need to do. They will provide you with the appropriate forms to fill out as well as some basic directions on how to do it.


After the loan officer provides you with the loan application and any other necessary paperwork, you will need to start filling it out. In most cases, you will be able to fill out the application in less than 30 minutes. Some applications require more time, but most of the time the process goes quickly. They are going to ask you for some basic information about yourself as well as your business. You will have to provide them with your name and the name of your business. They will want to know how much revenue your business brings in or what the projected revenue is. They will also want to know the reasons behind your loan request. For example, if you are planning on using the money for a certain expansion project, they will want to know all the details.


Once you have completed the loan application, it will then go through a review process. The lender is going to scrutinize everything on the application to make sure that everything is in order. They will also pull the credit file of the business or your personal credit file. They will want documents that verify businesses revenue as well as other financial documents about the business. They will send the application to a loan underwriter to review the application and the necessary documentation. 


If everything appears to be in order, they will approve you for the loan. The money that you need will then be distributed to you.