Before meeting with a loan officer at SF Fire Credit Union (or any financial institution) you’ll want to make sure you have the following items handy:
Your Credit History
- You can obtain your credit report once a year from one of the three major credit reporting agencies by visiting: www.annualcreditreport.com
- It also helps to have an idea of what your credit score looks like when applying for loans. If you’re a member of SF Fire Credit Union, you can view your Credit Grade on a quarterly basis. Simply sign up within Online or Mobile Banking.
A Business Plan
- There are many resources on the web or at your local government agency. (The Office of Small Business in San Francisco has put together a comprehensive guide.) We recommend you arrive with a well thought out business plan, or at minimum with a strong executive summary.
Your Equity Injection
- Equity injection is the percentage that the business owner is willing to invest of their own money into their business. This can range anywhere from 10%-30% (+/-) depending on the riskiness of the business.
Alternate Sources of Income
- Due to the financial risks of a new company, proof of alternative sources of income are typically required. This could include a part or full time job, rental property income, a working spouse or partner or investment income.
- You may want to be able to provide business and personal tax returns, pay stubs, summary of expenses, balance sheets and income statements.
- When applying for a business loan with a fixed term (i.e. not a line of credit), you will almost always be asked to borrow against some form of collateral (which could be property, cash, vehicles or equity). Think about what you could possibly use as collateral when applying for your business loan if necessary.