Applying for a business loan can feel intimidating—especially if you’ve never done it before. But the good news is, with the right preparation, you can walk into your loan meeting feeling confident and ready.
At Colony Bank, we believe in transparency and guidance. Our SBA lenders don’t just process your application—they help you tell your business story and strengthen your application to improve your chances of success.
What Do Banks Really Look For?
Every loan application is unique, but there are some key factors banks and underwriters consistently focus on:
1. Cash Flow
Lenders want to see that your business generates enough income to comfortably repay the loan. Expect us to review:
- Your past and projected revenue
- Business expenses
- Debt service coverage ratio (DSCR)
Tip: The stronger your cash flow history, the better your loan terms can be.
2. Collateral
Collateral provides security for the bank in case of default. It could be business assets like equipment, inventory, or real estate.
Tip: SBA loans are often more flexible with collateral, but being upfront about what you can pledge shows good faith.
3. Business and Industry Experience
We want to understand your expertise and track record. How long have you been in business? Do you or your leadership team have industry experience?
Tip: Strong experience can sometimes offset limited financial history for newer businesses.
4. Creditworthiness
Both personal and business credit scores are important. We’re looking for responsible credit usage and repayment history.
Tip: SBA loans are often accessible even if your credit is less than perfect, but transparency here is key.
5. A Clear Business Plan
Especially for startups or expansion loans, we want to see your vision:
- What is the purpose of the loan?
- How will it generate more revenue or efficiency?
- What’s your plan for repayment?
Tip: A brief, well-organized business summary makes a big impression.
How Colony Bank Helps You Prepare
Unlike online lenders, our Small Business Specialty Lending Team takes a consultative approach:
✅ We guide you through the required documentation
✅ We help you strengthen your business plan narrative
✅ We advocate for you with our internal credit team
✅ We recommend SBA or specialty loan options tailored to your goals
You don’t have to guess what lenders are looking for—we’ll coach you through it.
Get a Personalized Loan Readiness Review
Thinking about applying for a loan? We offer complimentary pre-application reviews to assess your readiness, review financials, and recommend the best approach—so you can apply with confidence.
👉 Start the conversation today:
https://colony.bank/business/lending/small-business/
