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Business Loans

Understanding Business Loans

There are multiple reasons why a business owner may need to take out a business loan. Whether it’s for general business needs, growth and expansion, or loan consolidation, here are some things to keep in mind during the application and repayment process:

The Application Process

  • Before applying for a loan, you should know exactly what you’ll use the funding for and when you will need the financing by. Being able to articulate a plan is important as well as applying early.
  • It’s important to keep accurate financial records for both yourself and your business; otherwise, the bank will be relying on inaccurate information, which could lead to the loan not being approved.
  • Apply early, before there’s an immediate need for the funding. Business loans may take longer than a typical consumer loan or credit card application. The process can take two weeks to one month, or even longer depending on the type of loan.
  • Ever wonder what lenders are looking for? Among the most important: a history of business profitability; how long you’ve been in business; how well you’ve retained profits; consistency paying suppliers and collecting from customers. If you’re a startup business with no history, it’s especially important to establish a strong relationship with your lender to ensure they can help in the right way.

The Repayment Process

  • Loans are granted based on the business’s capacity to repay. The process usually entails monthly payments, and you can talk with your lender to establish fixed or variable payments.
  • You will want to establish a repayment budget to ensure that loan payments will fit into your overall business strategy.
  • If you run into problems with making payments, it’s important to communicate that with your lender. Often they’ll be able to work with you to set up a new repayment schedule.

Whether you run a longstanding business or a startup, a big corporation or small shop, it’s important to establish a history with your lender. At Associated Bank, we value the relationships we have with customers and place a premium on customers with good relationships.

All trademarks, service marks and trade names referenced in this material are official trademarks and the property of their respective owners. Associated Bank, N.A. Member FDIC.

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All trademarks, service marks and trade names referenced in this material are the property of their respective owners.

Deposit and loan products are offered by Associated Bank, N.A. Loan products are subject to credit approval and involve interest and other costs. Please ask about detail on fees and terms and conditions of these products. Property insurance and flood insurance, if applicable, will be required on collateral.

Non-deposit investment products, insurance, and securities are NOT deposits or obligations of, insured or guaranteed by Associated Bank, N.A. or any bank or affiliate, are NOT insured by the FDIC or any agency of the United States, and involve INVESTMENT RISK, including POSSIBLE LOSS OF VALUE. Associated Banc-Corp and its affiliates do not give tax or legal advice. Consult with your tax and/or legal advisor for information specific to your situation.