--- title: The Basics of Small Business Lending description: Thinking about starting your own business or already own one and ready for your first business loan? Find out where to start with RMCU's Five C’s of Credit image: https://rmcu.net/hubfs/iStock-869619568_c.jpg --- [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) [Online Banking Login](https://banking.rmcu.net/auth/signin) [Online Banking Login](https://banking.rmcu.net/auth/signin) [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) - - [Home Loans](https://rmcu.net/home-loans) - [Personal](https://rmcu.net/personal) - [Business](https://rmcu.net/business) - [Membership](https://rmcu.net/membership) - [Careers](https://rmcu.net/membership/about-rmcu/careers) - [Contact Us](https://rmcu.net/contact-us) - Search - [Financial Education ▾](https://rmcu.net/blog/small-business-lending-2019#financial-education-nav) - [About RMCU ▾](https://rmcu.net/blog/small-business-lending-2019#about-rmcu-nav) - [Security](https://rmcu.net/membership/security) - [TruStage: Security Alert](https://rmcu.net/trustage-security-alert) - [Money Mastermind](https://rmcu.net/money-mastermind-lessons) - [Financial Counseling](https://rmcu.net/financial-counseling) - [Savvy Money](https://rmcu.net/membership/financial-education/savvy-money) - [Blog](https://rmcu.net/blog) - [Resources](https://rmcu.net/resources) - [RMCU Team](https://rmcu.net/membership/about-rmcu/rmcu-team) - [Member Information](https://rmcu.net/membership/about-rmcu/member-information) - [Annual Meeting](https://rmcu.net/membership/about-rmcu/annual-meeting) - [Community](https://rmcu.net/membership/about-rmcu/community) - [Our History](https://rmcu.net/membership/about-rmcu/history) [back to blog](https://rmcu.net/blog) [In The Community](https://rmcu.net/blog/topic/in-the-community) # The Basics of Small Business Lending Read Time **2 mins** | Written by: Kelly Fleiner [mailto:?subject=The%20Basics%20of%20Small%20Business%20Lending&body=https%3A%2F%2Frmcu.net%2Fblog%2Fsmall-business-lending-2019](mailto:?subject=The%20Basics%20of%20Small%20Business%20Lending&body=https%3A%2F%2Frmcu.net%2Fblog%2Fsmall-business-lending-2019)   ### 1. Character How has your past credit been handled? Are there any negative items on your credit report (late payments, liens, judgments, collections, bankruptcy, etc.)? We look at these factors when determining whether or not to approve a loan. ### 2. Capacity Does your business have cash flow and does it generate sufficient income to repay the loan? ### 3. Capital How much are you putting towards the investment? The more money you put into an investment shows an increased level of commitment to the investment.   ### 4. Collateral What are you offering as security for the loan? For an equipment loan, RMCU will generally secure the loan with the actual equipment.  This helps mitigate losses to the credit union if the loan were to go into default. ### 5. Conditions What are you borrowing the money for? Is it to purchase an asset or cover past business losses? We also look at trends in your particular industry, the overall economy, and any laws that might affect a potential loan. ### Ready to Go? As a new small business borrower, you should also familiarize yourself with lender guidelines as each lender is different. The [Small Business Administration](https://www.sba.gov/business-guide) is a great resource for all business owners. Finally, make sure you have the necessary paperwork ready for your lender. You can access RMCU’s application checklist [here](https://rmcu.net/hubfs/Campaigns/Commercial/Commercial%20Content%20Offers/RMCU_CommercialLoan-Checklist.pdf?__hssc=27616547.4.1558383382272&__hstc=27616547.92589d4e57dd8ad1e4573df883b0d2dc.1558383382267.1558383382267.1558383382267.1&__hsfp=3496322502&hsCtaTracking=6b84349e-47c6-4db5-afef-6c7b27a66bbe%7Cf6a2388e-c171-403a-9ac4-30f47b072254). For more information on business loans and services, please contact [Alan DeWit or Connie Robinson](https://rmcu.net/rmcu-commercial-contact-lp) today.   ***If you enjoyed this blog, you might enjoy these other related blogs:***  - [4 Reasons to Invest in Commercial Real Estate](https://rmcu.net/blog/home-trends-what-is-really-worth-your-money-0) - [Credit Unions vs. Banks](https://rmcu.net/blog/credit-unions-vs.-banks) - [10 Tips for Small Business Owners in Montana](https://rmcu.net/blog/10-tips-for-small-business-owners-in-montana)      [mailto:kfleiner@rmcu.net](mailto:kfleiner@rmcu.net) ##### Kelly Fleiner Kelly Fleiner, CUBDP is the Vice President of Brand and Community Engagement at Rocky Mountain Credit Union, where she leads marketing, public relations, and community impact initiatives rooted in Montana values. A strategic storyteller and culture champion, Kelly blends data-driven insight with people-first leadership to strengthen brands, empower teams, and deepen community connections. She is passionate about elevating the credit union movement through bold ideas, meaningful partnerships, and authentic engagement. Share the Love [mailto:?subject=The%20Basics%20of%20Small%20Business%20Lending&body=https%3A%2F%2Frmcu.net%2Fblog%2Fsmall-business-lending-2019](mailto:?subject=The%20Basics%20of%20Small%20Business%20Lending&body=https%3A%2F%2Frmcu.net%2Fblog%2Fsmall-business-lending-2019) You May Like These ## Related Articles ![](https://rmcu.net/hs-fs/hubfs/RMCU_10-tips-for-small-biz-owners-blogHeader.jpg?width=700&name=RMCU_10-tips-for-small-biz-owners-blogHeader.jpg) ### [10 Tips for Small Business Owners In Montana](https://rmcu.net/blog/10-tips-for-small-business-owners-in-montana) Whether you are just starting or have been working at it for years, these tips for small business ow... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/iStock-1003743872_c.jpg?width=700&name=iStock-1003743872_c.jpg) In The Community ### [Four Things You Will Need To Get A Business Loan](https://rmcu.net/blog/get-a-business-loan-2019) Many businesses use loans to facilitate their success. If you've ever wondered what you would need t... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/iStock-955988522.jpg?width=700&name=iStock-955988522.jpg) In The Community ### [What the Heck is an Operating Line of Credit for Your Business?](https://rmcu.net/blog/what-is-an-operating-line-of-credit-for-business) Small businesses need capital to survive especially when the economy changes. A good source for cash... 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