Small businesses in the manufacturing industry may need loans to accomplish their goals. Fortunately, there are things you can do to help with your SBA loan application as you work toward business success.

  • Be specific in your needs. When you need a loan for a manufacturing business, it is important to ensure that the lender knows exactly how much you need and why. This information will show the bank that you know what you will do with the financing, and the research you provide will show you are serious about the opportunity.
  • Provide information about management. When banks lend money, they want to know more than just financial information. Providing information about management will provide insight into how the company is run. 
  • Have collateral available. When you apply for an SBA loan, you will need to offer collateral to secure it. This is required for SBA loans. The type of collateral will depend on your company, its assets, and may include considering a personal asset to serve as collateral.
  • Include a credit score and history. Your credit score, as well as your credit history, is an important part of the loan application. It shows your ability to handle financial obligations. Though the bank will likely run its own credit report, the more information you can provide up front, the easier it will be to address potential issues with the bank ahead of time.
  • Provide financial paperwork. Any financial statements, bank statements, and tax returns for your organization should also be provided to the bank. These records give the bank an idea of the overall financial health of your organization. This will be a factor in the application process.
  • Explain how you’ll achieve your goals and projections. It’s good to have a business plan, and needing a loan to accomplish your goals is understandable. Showing the bank how you plan to achieve your sales projections emphasizes your seriousness about the business and its success.
  • Be ready to answer questions. Even if your loan application is complete, the bank will likely have questions that need to be answered. Be patient with the process, and answer any questions that arise. These answers give the bank a more complete explanation of your organization and its needs.

Whether you are a new business or ready to take your manufacturing to the next level, an SBA loan can be a good solution. These tips will help prepare you for the application process so you can achieve your business goals.