The Bank Business Loan Approval Process

Banks look at various criteria to decide if a bank business loan is approvable. First, they consider character, credit, and collateral. The character traits under consideration are living in the community a long time, being a homeowner, and family tying the borrower to his area.

Good Credit History

Those having a criminal record won't get approved for a bank business loan. The bank likes to see that the borrower is stable and not likely to skip town. Good credit history is very important. They review how the mortgage payments are made, whether on time or not.


Solid collateral definitely excites a banker and weighs heavily in favor of getting a bank business loan. Cars, trucks, and buildings are the type of collateral that bankers really appreciate. The secondary collateral they like is inventory, goods, and the raw materials for production. Though they prefer fixed assets these items have worth that bankers care about even if the secondary collateral depreciates.