top of page

Loan Readiness Checklist: What You Need Before Applying for Business or CRE Financing

  • Writer: Garrett Leonard
    Garrett Leonard
  • Dec 1
  • 4 min read

A Practical Guide from Creative Investment Advisors


Securing capital—whether for an acquisition, expansion, working capital, or commercial real estate purchase—requires preparation. Lenders want to understand who you are, how your business performs, how the new deal will generate income, and your ability to repay the loan.


The better prepared you are before approaching lenders, the faster and smoother the approval process becomes.


This Loan Readiness Checklist is designed to help you present a complete, credible, and bank-ready package for both business loans and commercial real estate (CRE) financing.

Why Loan Readiness Matters

A lender’s primary goal is to reduce risk. When an applicant provides clean financials, organized documents, and a clear story, underwriters can make faster, more favorable decisions.

Being “loan ready” helps you:

  • Increase your chance of approval

  • Secure better loan terms and lower interest rates

  • Speed up the underwriting process

  • Avoid delays, additional document requests, or denials

  • Demonstrate professionalism and management strength

Creative Investment Advisors helps clients assess loan readiness, prepare the necessary documents, and connect them to the right lender for their goals.

Your Loan Readiness Checklist

Below is the complete set of items lenders will ask for when evaluating business or commercial real estate financing.

1. Personal & Business Background

Lenders want a full picture of you and your business.

✔ Personal

  • Government-issued ID

  • Personal financial statement (listing assets, liabilities, and net worth)

  • Two years of personal tax returns

  • Resume or bio demonstrating experience relevant to the deal

  • Credit score (preferably 660+)

  • Explanation of any past credit issues or gaps

✔ Business

(If applying for a business acquisition loan or existing business financing)

  • Business plan or acquisition summary

  • Organizational documents (LLC, S-Corp, C-Corp, etc.)

  • Operating agreement or partnership agreement

  • EIN, licenses, and permits

2. Financial Documentation

Quality financials are the #1 factor lenders evaluate.

✔ For Business Acquisition or Working Capital:

  • Three years of business tax returns

  • Three years of profit & loss statements

  • Three years of balance sheets

  • Year-to-date financial statements

  • Accounts receivable & payable aging reports

  • List of add-backs (for business valuation and SDE/EBITDA calculations)

  • Inventory list (if applicable)

  • Debt schedule (all current loans and obligations)

  • Business bank statements (6–12 months)

✔ For CRE Loans (Acquisitions, Refi, or Construction):

  • Current rent roll

  • T-12 income & expense statement (trailing 12 months)

  • Copies of all leases

  • Lease expiration schedule

  • Property tax statements

  • Insurance information

  • CAM reconciliations (for retail/office/industrial)

  • Existing appraisal (if available)

  • Environmental reports (Phase I; Phase II if needed)

3. Loan Purpose & Deal Summary

Underwriters want absolute clarity on what you’re financing and why.

✔ Provide a written summary that includes:

  • Loan amount requested

  • Purpose of funds

  • Description of the business or property

  • Strengths and risks associated with the opportunity

  • Why the project makes financial sense

  • Your experience and ability to manage the business or property

A strong narrative—paired with data—reduces risk in the eyes of lenders.

4. Cash Flow & Debt Service Coverage

Whether it’s a business or property, the loan must be supported by cash flow.

Lenders analyze:

  • Debt Service Coverage Ratio (DSCR)

  • Historical, current, and projected cash flow

  • SDE or EBITDA for business loans

  • Net Operating Income (NOI) for CRE loans

  • Stability of revenue sources (tenants, customers, contracts)

  • Global cash flow (your personal + business financial picture combined)

Typical approval thresholds:

  • DSCR ≥ 1.20 (SBA loans)

  • DSCR ≥ 1.25–1.35 (conventional CRE loans)

CIA assists in running DSCR, NOI, SDE, EBITDA, and projection models before approaching lenders.

5. Collateral & Equity Injection

Most commercial loans require a down payment or additional collateral.

✔ Equity Requirements

  • Business acquisition: 10%–20% (SBA)

  • CRE purchase: 15%–30%

  • Construction or development: 20%–35%

✔ Acceptable Collateral May Include:

  • Real estate

  • Business assets

  • Equipment

  • Inventory

  • Personal assets (in some cases)

Creative Investment Advisors helps buyers structure deals that meet collateral requirements while protecting personal risk.

6. Business Plan or Acquisition Plan

Lenders want to know you have a roadmap.

Your plan should include:

  • Description of the business or property

  • Market and industry analysis

  • Competitive landscape

  • SWOT analysis

  • Marketing and sales plan

  • 12–24 month projections

  • Breakdown of assumptions (very important for lenders)

CIA provides professional business and acquisition plan templates for clients.

7. Property or Business Due Diligence

Before a lender approves a loan, they will independently verify all major details.

Business Due Diligence Items:

  • Customer concentration risk

  • Vendor contracts

  • Inventory condition

  • Management/employee structure

  • Licenses and compliance

  • Litigation history

  • Franchise agreements

CRE Due Diligence Items:

  • Appraisal

  • Phase I environmental study

  • Survey

  • Title search

  • Lease audits

  • Zoning verification

Being ready for this phase can shorten your closing timeline by weeks.

8. SBA-Specific Requirements (If Applicable)

The SBA 7(a) program is popular for:

  • Business acquisitions

  • Owner-occupied CRE

  • Working capital

  • Business expansion

SBA requires:

  • Full tax returns

  • Personal financial statements

  • Debt schedule

  • Business plan

  • Equity injection verification

  • Life insurance (often)

  • Independent business valuation

CIA works closely with SBA-preferred lenders to package applications that meet all SBA standards.

9. Professional Team & Support

Your lender will expect you to have professionals supporting your deal.

Your loan-ready team should include:

  • Business Broker (CIA)

  • CPA/Accountant

  • Commercial or Transaction Attorney

  • CRE Agent (if property involved)

  • Lender or Capital Advisor (CIA can connect you)

Prepared and coordinated teams reduce lender anxiety and increase approval likelihood.

Is Your Deal Loan-Ready?

If you're missing documents, unclear on your financials, or uncertain about your DSCR or valuation, a lender may delay or decline your application.

Creative Investment Advisors offers:

  • Loan readiness assessments

  • Document preparation

  • Underwriting-style financial reviews

  • SDE / EBITDA / NOI / DSCR analysis

  • Lender introductions (SBA, CRE, bridge, private lenders)

Final Thoughts

A loan-ready client is a lender’s ideal borrower. By organizing your documents, strengthening your financial story, and preparing a complete loan package, you’re not just applying—you’re presenting yourself as a strong, reliable partner.

Whether you’re buying a business, purchasing commercial real estate, acquiring a franchise, or seeking growth capital, this checklist will guide you through the process and increase your chances of success.

Need Help Getting Loan-Ready?

CIA can prepare your full loan package and introduce you to the right lender for your specific deal.


👉 Book a Discovery Call with Creative Investment Advisors

Let’s get your business or CRE deal loan-ready and lender-approved.

 
 
 

Comments

bottom of page