Whether you're just exploring financing or ready to apply, this guide walks you through every step — business planning, financial statements, lender conversations, and the documents you'll need.
Pick the option that best describes where you are right now. We'll highlight the sections most useful to you.
You have a business idea or early-stage business but aren't sure if financing is the right move yet.
Included in Track A:
You know a loan is the right move. Now you need to prepare your financials, documents, and lender conversations.
Included in Track B:
You've done the prep work. Your financials are in order and you're ready to submit an inquiry.
Included in Track C:
Complete E-Book! Everything you need to know to apply for a business loan — business plans, financial statements, lender conversations, and documents. Free from Craft3.
We believe you are capable, creative, and resourceful. We're here to support and empower you throughout the loan process.
A business plan is your roadmap — for you, your partners, and any lender you work with.
If you're serious about launching or growing a business, a business plan is a must. You'll also likely need one if you're seeking funding for a startup, for expansion, or if your business is less than 2 years old.
A strong business plan:
Summarizes your business structure and immediate plansExplains who you'll sell to and how you'll find customersAnalyzes your competition and your competitive advantageIdentifies your strengths, weaknesses, and path to profitabilityKey sections every strong plan should include, distilled into a single actionable page.
This guide features a detailed breakdown of key business plan sections, video guides, templates, and other resources to support you in building a strong, effective plan. Whether you're starting from scratch or improving an existing one, these tools will help you move forward with clarity and confidence.
Unleash the Potential of Your Business With a Solid Plan →
When Sundown Hazen, owner of Chesed Farms, first connected with Craft3, he had a solid idea but didn't have a business plan. We recommended he work with the local Small Business Development Center on a business plan. He put in that work, came back to Craft3, and we were able to make a loan for him to build out a new warehouse space.
Understanding, creating, and using financial statements can help you make informed and strategic decisions about how to run and grow your business.
Every lender will want to review your financial statements before approving a loan — but these documents are more than a formality. They reveal whether your business is profitable, financially stable, and generating enough cash flow to service new debt.
You don't need to be an accountant, but understanding your numbers puts you in a stronger position — both at the lender's table and in running your business day to day. The three statements lenders will ask for:
Shows your revenue, expenses, and net income over time
A snapshot of what you own, what you owe, and your equity
Tracks how money flows in and out of your business
Together, your P&L, balance sheet, and cash flow statement give lenders — and you — a complete picture of your business's financial health.
In addition to often being able to work with incomplete financials, Craft3 offers resources to help you understand and create your own basic financial statements.
Our network of professionals is part of the value of working with Craft3. We may not have all the answers, but we know someone who does. We can connect you to certified public accountants (CPAs), bookkeepers, and other service providers.
P&L, balance sheet, and cash flow essentials — what they are and what lenders look for.
Visit our full Financial Statements page for video guides, templates, and step-by-step walkthroughs of the P&L, balance sheet, and cash flow statement. Whether you're starting from scratch or cleaning up your books before applying, these resources will help you understand your numbers and present them confidently to a lender.
Understanding and Using Financial Statements for Your Business →
When a creative and talented chef contacted us about a loan to turn his side business into a full time venture, he had a solid business plan and delicious products. But up to this point he hadn't done any formal bookkeeping. We looked at his Square receipts and put together some financial projections before issuing a $45,000 loan. We're often able to work with entrepreneurs who have strong businesses, but incomplete financials or unconventional bookkeeping.
Whatever a loan enables should improve your business and increase your profits.
A loan might help you increase productivity, lower your costs, or grow your sales. If it doesn't do one of those things, then debt likely isn't the answer — at least not right now.
For example, if you're thinking of using a loan to bail yourself out of a difficult situation, that's a red flag. As is not having a clear sense of how a loan will enable your business to succeed.
Do you have a simple and persuasive explanation for how a loan will improve your business?
"I need a loan because ________, and it will improve my business by ________."
Yes. Congratulations! This is an all-important step in getting ready to apply for a loan.
No. We recommend you don't apply for a loan right now and instead work on your business plan and determine how a loan fits into that plan.
Find out if a business loan will actually help you grow — before you apply.
Visit this page for in-depth guidance on evaluating whether financing is the right move, plus a video walkthrough and a cash flow template to support your planning. If your DSCR doesn't yet support the loan size you need, the page also explains what steps you can take to strengthen it over time.
Determine if a Loan Can Help Your Business Succeed →
Two veterinary technicians came to us wanting to buy a piece of specialized equipment that would make them the only specialized rehab provider in their region. We walked through the DSCR together — as well as plans “B” and “C” for if the business took longer to ramp up than expected. The numbers showed that they would be able to afford the business expenses and the monthly loan payments. We made the loan, and helped them realize this opportunity to grow.
If you determine that your business would benefit from a loan and you're ready to start reaching out to commercial lenders, it pays to be prepared to talk about your business.
Typically, you'll talk to a commercial lender before submitting a full loan application. The lender will want to learn more about you, your business, and your financing needs.
Depending on what they learn, they may invite you to work with them and submit a full application. Or they may let you know why they don't think you're ready to apply quite yet.
What to be ready to discuss:
Your business history and how it operates todayWhat you need the loan for and how it will helpYour personal financial background and credit historyRevenue trends and cash flow patternsWhat collateral (if any) you have availableCommon questions lenders ask — with space to prepare your answers before your first conversation.
Talking to a commercial lender is an opportunity to make a strong first impression—and preparation can make all the difference. This page offers a downloadable worksheet packed with insider tips to help you shine. You'll get a table of the most common lender questions, what smart lenders are really listening for in your answers, and space to organize your key talking points.
Prepare to Discuss Your Business with a Lender →The first conversation with a lender isn't an application — it's a conversation. Come prepared to talk about your business clearly and confidently, and that conversation will open doors. We often meet with entrepreneurs two or three times before they submit a full application, and that preparation makes a real difference in how quickly a loan closes.
Understanding your audience is helpful regardless of the situation.
If you're considering applying for a loan, insights into how a lender thinks can give you an advantage.
While lenders are not all the same, here are a few common concerns:
They assess your ability to generate enough cash flow to make regular loan payments — now and in the future.
They look for 'skin in the game' — your personal investment of time, capital, and commitment.
They evaluate your track record of following through on commitments and your ability to navigate challenges.
Credit challenges don't automatically disqualify you. Context matters, and explanations are important.
Craft3 can do deals with little collateral, but a willingness to offer personal assets as collateral indicates a confidence in your business that will likely instill confidence in a lender.
See your loan application from a lender's perspective and understand what drives lending decisions.
Visit this page for deeper insight into how lenders assess cash flow, character, collateral, and credit history — along with practical tips for addressing each. Understanding what drives lending decisions helps you tell a stronger story in your application.
Thinking Like a Lender: Insights for Your Loan Application →
As a banker, I often found myself saying, 'No,' to good people with good ideas. Craft3, a mission-driven community development financial institution, can take more risks and make loans banks can't. For example, we're often able to finance good businesses with 'bad' credit, so long as there's strong business opportunity and plausible explanations for any credit blemishes.
Much like launching a business, getting loan ready is a journey. It takes time. You may experience setbacks. We urge you to stick with it!
Consider where you are in your process and use that to identify the two most important actions in front of you. Focusing on a short list — rather than everything at once — is how Loan Ready entrepreneurs actually make progress.
The two steps that you identified above can help you focus your efforts. In our experience, entrepreneurs are more likely to succeed when they:
Break large tasks down into more manageable stepsHave a plan and target completion datesRevisit their plan every few monthsA step-by-step planning template to help you break your biggest goals into manageable next steps — and track your progress along the way.
During that time, we help develop financial projections, connect you to a bookkeeper or SBDC coach, or simply serve as a sounding board as your business grows.
The loan is the destination — but we're here for the whole journey.
One of the most common reasons a loan application stalls is missing or outdated documents. We've seen strong businesses lose weeks — sometimes months — because a tax return was missing or financial statements hadn't been reconciled. Get organized before you need to be, and the rest of the process moves much smoother
The final step in getting loan ready is often gathering the supporting documents a lender will ask for.
Getting to this point takes real work — and you've done it. You have a business plan, you understand your financials, and you know how a loan will help your business grow. Congratulations!
Two years of business and personal tax returnsPersonal Financial Statements from anyone who owns 20% or more of the businessTwo years of financial statements (profit and loss and balance sheet) plus year-to-date financial statementsNOTE: you can apply with an Individual Taxpayer Identification Number (ITIN)
If your business is new (less than 24 months old), we also ask for:
NOTE: If your business is established and has a historic ability to service the debt you are requesting, we typically don't require projections
Track your documents, stay organized, and be prepared.
What happens next? Submit your inquiry and you'll get a confirmation email right away. We typically follow up within three days. If it looks like a good fit, we'll invite you to schedule an intake call — no commitment required.
Get the resources you need to feel confident and prepared as you grow your business and explore financing options. Each download is designed to make complex concepts simpler and help you move forward with clarity.
Complete E-Book! Everything you need to know to apply for a business loan — business plans, financial statements, lender conversations, and documents. Free from Craft3.
If you’re interested in starting or expanding a business, you’ll likely encounter lots of terms and acronyms.
A printable one-pager summarizing the key sections every strong business plan should include.
A quick-reference guide covering the essentials of income statements, balance sheets, and cash flow projections.
A printable worksheet to help you decide if financing is the right move for your business goals.
A practical worksheet featuring common lender questions, insights into what they’re really listening for, and space to organize your key talking points.
A printable guide to help you see your loan application from a lender’s perspective and prepare more strategically.
A checklist of the financial and business documents lenders typically require when applying for a loan.
A reflective worksheet to help you assess your business's current position and plan ahead for success.
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Relevant stories, news, and insights from Craft3Content matched to where you are in your journeyNo spam — unsubscribe at any timeCraft3 is a nonprofit community lender focused on building a thriving, just, and empowered Pacific Northwest. We support entrepreneurs — especially those who have been denied access to opportunity — by offering responsible capital and tools to support you on your business journey.
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