✅ What Lenders Look for in Your Loan Application (And How to Put Your Best Foot Forward)
When you’re applying for a loan—especially from a mission-driven lender like Growth Community Fund —it’s not about slick jargon. It’s about being clear, prepared, and authentic. Here’s what lenders really care about.
1. A Strong & Clear Business Plan
Lenders want to understand what your business does, who it serves, and how it makes money. Think of your business plan as a roadmap—not just for them, but for you, too.
Tips:
• Include a mission statement, customer profile, and revenue model
• Share realistic short- and long-term goals
• Be transparent about challenges and how you’ll address them
2. Your Financial Picture
The numbers matter—but context matters more. Lenders review your financial health to make sure you can repay the loan. They’ll typically ask for:
• Personal and/or business tax returns
• Recent bank statements
• A budget or financial forecast
If something looks shaky, explain it. A dip in revenue during COVID? A transition to a new business model? Lenders appreciate honesty and context.
3. Credit History
Your credit doesn’t have to be perfect—but lenders will want to see how you’ve managed debt before. What they’re checking:
• Your credit score (but with flexibility—especially from a mission-based lender!)
• Patterns of late payments or collections
• Outstanding debts
Tip: If your score is low, share what you’re doing to improve it, like paying down balances or working with a credit counselor.
4. Collateral or Guarantees (Sometimes)
Not every loan requires collateral, but if it does, lenders may want to know what assets you can pledge as security. This could be:
• Equipment or inventory
• Property
• Personal guarantees
Don’t let this scare you off! Many mission-based lenders offer unsecured loans or are willing to get creative.
5. Your Commitment & Character
Mission-based lenders look beyond the numbers. They care about who you are, what you’re building, and how it impacts your community. Showcase this through:
• Letters of reference
• A personal statement
• Your story—why you do what you do
When you apply for a loan, you’re not just asking for money — you’re asking someone to believe in you. We are here to listen and support. Be honest, be prepared, and don’t be afraid to ask questions. The right lender wants you to succeed just as much as you do.
