A guide for launching a business.
Securing funding is one of the most important steps in launching a new business. Whether you’re opening a boutique in Covington, starting a landscaping service in Independence, or purchasing a small manufacturing company in Milford, meeting with a banker is often your first major milestone.
But walking into that meeting unprepared makes the process harder for you and your lender.
This guide covers exactly what you need to bring to your financing meeting, why each item matters, and how being prepared can strengthen your application from the start.
1. A Clear Business Plan
A well-structured business plan helps your banker understand what you're building and how you intend to make it successful. It doesn’t need to be 50 pages, but it should include:
- Summary of business concept
- Target market
- Competitive landscape
- Revenue model
- Key expenses
- Growth plans
Why it matters:
Bankers look for clarity. They want to see that you understand your market and have a realistic strategy for generating income.
"Don't make your banker fill in the gaps because your plan is missing key information," Ben Johnson, Heritage Bank Commercial Loan Officer based in Montgomery, Ohio.
2. Startup Cost Estimates and Financial Projections
One of the most important things you can bring is a clear picture of the numbers. Bring:
- Estimated startup costs
- 12–24 months of projected income and expenses
- Cash flow forecast
- Break-even estimate
Why it matters:
Accurate projections show lenders that you’ve done the research and understand what it will take to build and sustain your business.
"Know your numbers," said David Gronotte, Heritage Bank Commercial Loan Officer, based in Burlington, Kentucky. "Knowing what numbers are critical and being able to back them up reassures the bank that you and your business are a good risk."
3. Personal Financial Information
Because new businesses rarely have financial history, lenders evaluate you. Your financial habits, creditworthiness, and ability to repay.
Expect to bring:
- Personal tax returns (2 years)
- Recent bank statements
- Personal financial statement (assets, debts, income)
- Credit history or explanation of credit challenges
Why it matters:
Your personal credit plays a large role in business lending early on. Strong personal financial management builds confidence with lenders. Eventually your business will develop its own credit history.
4. Business Formation Documents
Depending on your structure, bring any documents that confirm your business is registered and legitimate. This may include:
- Articles of Organization (LLC)
- Partnership agreement
- Operating agreement
- EIN confirmation letter
- Required local or state licenses
Why it matters:
Lenders need to verify ownership, structure, and the legal formation of the business before making financing decisions.
5. Collateral Information (If Applicable)
Not every loan requires collateral, but many types of funding consider it. Bring details on:
- Vehicles or equipment you intend to purchase
- Equipment you already own
- Real estate you plan to use
- Inventory or other business assets
Why it matters:
Collateral helps reduce risk for the lender and may improve your approval odds or even secure a better interest rate.
6. Quotes or Vendor Estimates
If you’re seeking financing for equipment, build-outs, software, or vehicles, bring written estimates.
Examples include:
- Contractor renovation quotes
- Equipment or machinery quotes
- Vehicle purchase sheets
- Technology/software proposals
Why it matters:
Lenders need accurate costs, not approximations, to determine the right loan amount and structure. Some business expenses qualify for depreciation over several years, so knowing what expenses can be deducted from taxes in the early years is information bankers' factor into their considerations.
7. Your Questions
A financing meeting isn’t just an evaluation, it’s a conversation. Prepare questions such as:
- What financing options fit my stage of business?
- What repayment terms should I expect?
- How soon can I access funds if approved?
- What are the differences between SBA loans and traditional loans?
- How can I strengthen my application if I'm not ready yet?
- Do you have experience working with businesses like mine (same industry, same size, same structure)?
Why it matters:
Bankers want you to succeed. Asking the right questions helps you build a strong relationship and understand the best path forward. Also, find the right business banker. Establishing a rapport and a sense that you can speak frankly and expect good counsel is critical to long-term success.
Why Coming Prepared Matters
Being prepared does more than speed up the process, it strengthens your credibility. Lenders want to see that you understand your business, your finances, and the responsibilities that come with borrowing.
Preparation shows:
- You’re serious
- You’re organized
- You’re ready to manage funding responsibly
- You value the partnership with your banker
This can make a meaningful difference in approval decisions.
Next Steps: Explore Your Funding Options
Whether you're applying for your first business loan or deciding between SBA loans, traditional financing, or lines of credit, the right partner makes the process easier.
Explore Heritage Bank’s business financing options and connect with a commercial lender today.
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