How to Apply for a Business Loan: Step-by-Step Guide

Running a small or medium business in the U.S. is a wild ride. One day you’re on top of the world because you landed a new contract, and the next, you’re wondering if you can afford another espresso machine for the break room. If you’re looking to scale, stabilize, or simply survive, a business loan might be just what the accountant ordered. Here’s your no-fluff, step-by-step guide to applying for a business loan—with a sprinkle of humor and a whole lot of practical advice.

Step 1: Know Why You Need the Loan

Before you run off to the lenders, know what you need the money for. Expansion? Equipment? Emergency espresso machine?

• Define a clear purpose for the loan
• Determine the amount needed (not just what you want)
• Be prepared to explain how it benefits your business

Step 2: Know Your Numbers

Lenders are like detectives with spreadsheets. They want to see:

• Your credit score (both business and personal)
• Profit and loss statements
• Cash flow history
• Existing debts

Pro Tip: Clean up your financials before applying. No one wants to loan money to a mess.

Step 3: Pick the Right Type of Loan

There are more types of business loans than there are streaming services. Here are a few common ones:

• Term Loans – Traditional and great for long-term goals
• Lines of Credit – Flexible funding for working capital
• SBA Loans – Backed by the government and favorable terms
• Equipment Financing – You guessed it, for gear and machinery

Step 4: Gather Your Docs

Paperwork time! You’ll usually need:

• Business plan
• Tax returns (personal and business)
• Bank statements
• Business licenses
• Articles of incorporation

Bonus: Having this stuff ready makes you look like you’ve got your act together.

Step 5: Apply

You can go traditional (bank), digital (online lenders), or somewhere in between. Keep your eye on interest rates, repayment terms, and fees like origination charges.

Pro Tip: Don’t shotgun-blast applications. Too many credit checks can ruin your score.

Need help navigating the loan labyrinth? Viking Funding makes it simple. Give us a call at 754-240-8620 or click the Apply Now button. We’ll help you go from “I need funding” to “Got the funds!”