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Business Loan Checklist: 10 Steps to Speed Up Your Application

Home BlogBusiness Loan Checklist: 10 Steps to Speed Up Your Application
Business Loan Checklist: 10 Steps to Speed Up Your Application

Applying for a business loan can be a major step for your company, whether you’re ready to expand, purchase equipment, or boost working capital. But one of the biggest mistakes business owners make is waiting until the last minute to gather all the necessary information that lenders require.

By getting all your documents and financial details in order ahead of time, you’ll not only speed up the process but also boost your chances of getting approved. This handy 10-step checklist will walk you through everything you need to apply with confidence.

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Step 1: Define Your Loan Purpose and Options

Before you apply, be crystal clear about why you need financing. Your loan purpose helps your banker match you with the right product and terms.

Identify the reason you’re seeking financing:

  • Expansion: Opening a new location or hiring staff.
  • Equipment: Purchasing machinery, technology, or vehicles.
  • Working capital: Covering payroll, inventory, or day-to-day expenses.
  • Commercial real estate: Buying, refinancing, or renovating property.

Match your need with the right loan option:

  • Term loans: Fixed payments for predictable expenses.
  • Lines of credit: Flexible access to funds for ongoing needs.
  • Equipment loans: Finance the purchase of machinery or technology.
  • SBA loans (7(a) and 504): Government-backed programs ideal for real estate, expansion, or large equipment purchases.
  • Commercial real estate loans: Purchase, build, or refinance property.

MidWestOne Tip: We can help you compare programs side by side, like whether an SBA 504 loan or an equipment loan best fits your situation, so you don’t waste time applying for the wrong type of financing.
 

Learn More About Business Loans

Step 2: Complete a Pre-Application Self-Check

Before gathering documents, ask yourself:

  • Do I know how much I need to borrow and why?
  • Can I show how the loan will help my business grow or improve cash flow?
  • Am I confident in my ability to repay the loan?
  • Do I have collateral (if required) or a strong enough credit profile for an unsecured loan?

If you answer “no” to any of these, schedule time with a MidWestOne business banker. We’ll help you align your loan request with your business goals.

Contact Our Business Banking Team Online

Related: What Makes a Business “Creditworthy”?

Step 3: Gather Your Business Financial Documents

Having accurate, up-to-date financial records is one of the most important parts of the application. Here is what you should have ready:

  • Business tax returns: 2–3 years of returns
  • Profit and loss (P&L) statements: Year-to-date and prior years
  • Balance sheets: A current snapshot of assets and liabilities
  • Cash flow statements: Show how money moves in and out of your business
  • Business bank statements: Typically the last 3–6 months
  • Business debt schedule: A list of your long-term debts

MidWestOne Tip: Clients who bring organized financials at the start often move a lot quicker through the underwriting process. Save documents as PDFs and keep them stored in a single folder for quick sharing and access.

Questions? Ask a MidWestOne Expert

Step 4: Prepare Your Personal Financial Information

Most small business loans require a personal guarantee, especially if your business is newer or still building credit.

  • Personal tax returns: Last 2–3 years
  • Personal bank statements: 3-6 months
  • List of personal assets and liabilities

Being prepared with this information helps your banker assess your overall financial strength and build the best loan package for you.

Ready to Apply for a Business Loan? Visit a Branch Near You

Step 5: Review Your Credit History

Both your personal and your business credit profiles will be reviewed. Strong credit can mean lower rates and more favorable terms. Here’s what we recommend doing:

  • Pull your personal credit report from Experian, Equifax, or TransUnion.
  • Check your business credit report from agencies like Dun & Bradstreet.
  • Dispute any errors before you apply.
  • Pay down outstanding balances when possible.

Mistake to Avoid: Don’t open new credit accounts right before applying. It can lower your score and raise questions about your cash flow.

Related: 6 Tips to Improve Your Odds of Receiving a Business Loan

Step 6: Update Your Business Plan

Even if you’ve been running your business for years, having an updated plan shows off your strategy and your ability to repay. Here’s what to include in your business plan:

  • Include your company overview and market position.
  • Outline how the loan funds will be used.
  • Add updated financial projections for the next 12–24 months.
  • Explain your growth strategy and repayment plan.

Example: If you’re applying for an SBA 504 loan to purchase new equipment, include quotes or invoices showing the exact equipment you’ll buy and how it will boost revenue or efficiency.

Step 7: Collect Legal and Organizational Documents

Your lender needs proof of your business’s structure and legal standing. Here’s what that will likely include:

  • Articles of incorporation or organization
  • Business licenses and permits
  • Partnership or operating agreements (if applicable)
  • Real estate leases or deeds (if relevant to your loan purpose)

MidWestOne Tip: These documents rarely change. Store them digitally so you can access them quickly for future financing needs.

Step 8: Understand Collateral Requirements

Most loans require collateral — assets you pledge to secure the loan.

Know what you can pledge:

  • Real estate
  • Equipment or vehicles
  • Inventory
  • Accounts receivable

If you’re applying for an unsecured loan, your banker will evaluate your credit and cash flow in more detail.

Step 9: Follow Our Bonus Tips for a Faster Approval

  • Apply before you need funding. Waiting until you’re in a cash crunch makes the process more stressful. Start the process by contacting us today.
  • Be upfront about challenges. If you’ve had a tough year, explain what you’re doing to recover.
  • Stay in close contact with your banker. At MidWestOne Bank, we’re local and responsive. We’ll tell you exactly where your application stands.
  • Ask questions early. Knowing the requirements for SBA 7(a) and 504 loans or equipment loans can prevent backtracking later.

Step 10: Partner With MidWestOne for Your Business Lending Needs

Securing the right financing can help you achieve your next big milestone, but you don’t have to go through the process alone!

At MidWestOne Bank, we provide:

  • Local decision-making and fast turnaround times
  • Tailored loan options for businesses of all sizes
  • Hands-on guidance through the entire application process

Related: How Your Bank Can Help Your Business

Ready to Get Started?

Contact a MidWestOne business banker today to start your application with confidence. Prefer to see us in person? Visit a branch near you today. We look forward to seeing you!

Visit a MidWestOne Bank Branch Near You

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Final Thoughts

The key to a smooth loan application is preparation. Use this checklist to gather your documents, strengthen your application, and move quickly from approval to funding.

MidWestOne Bank is proud to be your business banking partner, helping you leverage credit and lending solutions to take your business to the next level.

Learn More About Our Business Banking Services

Posted On: July 30, 2025 by MidWestOne Bank in: Business Guides Tips