Financial Wellness Minute: Small Business Loans - Where do I start?

Get smarter about your money with this Financial Wellness Minute. I'm Patrick Voigt, Office Manager at Mid Minnesota Federal Credit Union in Detroit Lakes. Minnesota small businesses are diverse and employ close to half of our workforce. They are vital to our economy. To help these businesses thrive, the owner may need access to money to invest in equipment or expansion. The way they do this is through a business loan from a bank or credit union. The loan process may sound overwhelming, but let's break it down because you probably have everything you need already.

1. Before you apply for a loan, you need to have a clear picture of where your business is headed. Both with immediate needs and short- and long-term plans. Keep in mind, any seasonal changes that occur in your business. Agriculture or farming as an example.
2. You will need to determine how much debt you are comfortable with before you apply. Be honest with yourself. If business slows down, how much can you afford. 
3. Having all the basic business documents organized will make the application process smoother. This includes business tax returns, business plans, ownership structure, income and expense projections and possibly personal financial statements

Small businesses are key components in our communities, as they thrive our communities grow. Want to know more about business loans? Contact one of our business lenders today! Would you like to have a weekly financial wellness tip sent to you? Sign up below or, contact your local Mid Minnesota Federal Credit Union Office. Sign Up for a Weekly Financial Wellness Tip Mid Minnesota Federal Credit Union is federally insured by the NCUA and we are an Equal Housing Lender.