How to Ask for a Small Business Loan from Your Bank

Updated August 2025

Building your own business takes time, commitment, and perseverance in today’s economy. From developing a comprehensive business strategy to getting your final product or service buttoned up for your customers, it takes research, prep work, and working capital to realize your passion and become your own boss. But, once you have your business plan finalized, just how do you go about presenting your idea to secure the funding you need like a small business loan?

At Landmark National Bank, we know it might seem daunting at first to present a loan request for your business plan, but we are here to help you pitch your idea like a pro. With this guide, we will prepare you for a meeting with one or our friendly, knowledgeable commercial bankers—giving you the confidence you need to walk through our doors and showcase all that your business has to offer. Let’s go through the steps you’ll need to apply for a loan.

Present Your Loan Request with Confidence

When it comes to presenting a small business loan request, there are a few key strategies that will help show off your industry expertise, experience, and passion, including:

Building an Open Relationship

The foundation of securing a small business loan starts with building a strong relationship with your banker. From having honest conversations to bouncing ideas off one another, a good working relationship between you and your commercial banker relies on open communication and a strong focus on what will make your business the best it can be. At Landmark National Bank, our commercial bankers are passionate about helping you find success, so it’s important to be upfront about your situation and your future goals right from the get-go.

Requesting a Loan

When you meet with one of our commercial bankers, he or she will want to know a little about you, your background, and your business. Your banker will need to understand some general information about your request, such as:

How you plan to use the money
The amount of money you are requesting
Your desired loan terms
How you plan to pay back your loan
And collateral to be used

You may have this information ready in writing, or you can verbally communicate these facts to your banker. Remember, it is important to be prepared with this information before your meeting at Landmark National Bank, as it lets your banker know that you are serious and have put the time and effort into your plan. Landmark has a suite of digital calculators that may be helpful as you put together your business plan.

Evaluating Your Proposal with the 5 C’s

Once your commercial banker has all the information he or she needs about your request, it will be evaluated against the 5 C’s—which include character, capacity, capital, collateral, and conditions.

1. Character

Your commercial banker will take a careful look at your character. A borrower’s character is generally considered the most important factor in the lending process. Are you trustworthy and honest? Do you have integrity? In your meeting, make sure to tell the truth, good or bad. You can make all the money in the world, but if you do not make good on your promises, it will be difficult to establish a trustworthy relationship.

In addition, your banker will want you to understand the risks associated with your business and discover if you have the industry-related experience to mitigate them. Make sure to highlight all your experience in your line of business and how it relates to your future endeavors. For example, a hairdresser wanting to open his or her own hair salon will be more likely to acquire funding than a hairdresser wanting to open a construction company.

2. Capacity

Your financial ability to meet your debt obligations is your capacity. You may hear your commercial banker refer to “primary source of repayment” and “secondary source of repayment.” For example, if you are opening a gym, your primary source of repayment will be the income generated from selling memberships and other operating revenues.

Typically, a business will want to generate about $1.20 in operating cash flow for every $1.00 of debt payments. This is where a cash flow projection will come in handy. Think about a year’s worth of operations and put a number to the revenue and expenses you expect.

3. Capital

Your “skin in the game” is your capital. This can be from you directly or an investing partner. The more capital you can bring upfront, the better chance you have at being successful in securing a loan. Simply put, the capital funnel into your project illustrates your commitment to the business.

Depending on the type of financing you are seeking, a bank is going to want you or investors to provide at least 20% of the total project cost upfront. However, there are Small Business Association (SBA) loan programs that can help reduce the capital investment to 10%, but specific requirements must be met. Be sure to ask your banker if you meet SBA loan program qualifications.

4. Collateral

The asset that secures your small business loan is the collateral. Collateral is usually what the proceeds of the loan are used for and can be anything from accounts receivable, inventory, cash, equipment, or real estate. Collateral is usually considered as the secondary source of repayment in case the primary source of repayment fails.

In most cases, Landmark National Bank will secure a loan with an asset that has the same useful life as the length of the loan. For example, a 15-year loan will be secured by real estate and not inventory that will turnover multiple times a year.

5. Conditions

The current state of the economy and trends in your industry are the conditions. While these conditions can be out of your control, they will still affect your ability to repay the loan. You will want to define your market area and describe how those outside factors affect your business plan. Be prepared to discuss your competition and how you plan to differentiate your business from those competitors.

The other “C”

Credit history. Before you start the loan process, check out your credit history/credit score. Your commercial banker will take your credit score into consideration as part of the loan review process. A high credit score may offer lower interest rates while a low credit score may mean higher interest rates or even denial of your loan application altogether. Don’t let a low credit score deter you from talking to your banker, it’s just nice to know where you stand before you begin the process.

FICO® Score Ranges

Exceptional / Excellent: 800–850
Very Good: 740–799
Good: 670–739
Fair: 580–669
Poor: 300–579

Additional Information You Will Need

In addition to bringing your business plan (which should include most of the information mentioned above) to your loan request meeting, your commercial banker will also request to see the following financial information:

Three years of financial statements and tax returns
Pro forma income statement and balance sheet
Three years of personal tax returns
Personal financial statement

These documents will help one of our team members grasp your past, current, and future financial positions. If you have any questions about these additional documents, don’t hesitate to reach out to our friendly team today.

Types of Business Loans

Once you’re approved, you and your banker will work together to choose the best business loan for your situation. There are many different types of loan products available, depending on your industry and your goals. Whether you’re a small startup or a long-standing business looking to scale, we’re here to help you find the best business loan to fit your needs.

Achieve Your Business Goals with Landmark National Bank

At Landmark National Bank, we want you to feel confident presenting your loan request to one of our commercial bankers. Aside from preparing the proper documentation and information for your meeting, it is important to remember to just be yourself. We enjoy doing business with honest, hard-working people who are passionate about their goals. For more information on what we require to apply for a loan, feel free to find a Landmark National Bank location near you or give us a call today.