Why Your Story Matters in a Loan Application

  • June 6, 2023

For better or for worse, business ownership is not like an episode of Shark Tank. When you need capital, most entrepreneurs don’t have the opportunity to craft a personalized pitch to present in front of potential lenders. 

Instead, your voice gets baked into a loan application(s), alongside your financial figures. While your numbers are significant, the reality is your story is equally compelling to lenders. 

The narrative you present in your loan application could actually be a key deciding factor between getting the financing you’re after – or being turned away. 

Going Beyond the Numbers

Unlike guests of Shark Tank, you will not be in the room where a credit decision is made about your business. So, the story you weave in your application needs to stand on its own.

Financials and credit history certainly create clarity about the status of your business. If you’re already established, your business’ past, current and projected performance are essential. When getting your business off the ground, some important points to share are numbers around your projected growth trajectory, plus how you’ll get there and why there’s an opportunity in your niche. 

All of this data is an excellent gateway to showcasing the drive, determination and passion you have for your business. Your goal should be clearly articulating the opportunity and security a lender should have when funding your business. This can include how you handle setbacks and challenges and what makes you confident in the future performance of your business. 

Thinking beyond hard numbers helps portray you as a savvy entrepreneur, business manager, leader and overall purveyor of success.  

Making your Story Count

If you want your voice to be present in the loan decision meetings, you must be able to write and share your story in an impactful way. Essentially, you need to help the loan officers answer the question: “Why should we lend you money?”

Help them get to know you with background information, such as your professional and personal background, what your skills and expertise are, and why you started your business. Then, take them to the present day and beyond by explaining what your business goals are and the steps you’ll take to get there. 

This will help the credit decision committee determine whether you have the necessary experience and track record to execute your vision. 

Make it clear you’re aware of the potential setbacks, but also explain how you’re mitigating these risks. If you’ve made any mistakes throughout your journey, delve deeper into why those obstacles occurred and how you remediated them. This shows you’re a problem solver and understand the market, while still displaying resilience despite the roadblocks you’ve encountered.

All in all, your story – combined with your detailed business plan and clearly presented financials – should tell a cohesive narrative that jumps off the page and wins you the funding you desire 


About AVANA Capital 

Established in 2002 and headquartered in Glendale, Arizona, AVANA Capital is a direct lender that serves business owners across the country through fast, flexible and reliable financing. For over two decades, we have empowered entrepreneurs in niche industries, aided job creation and supported clean energy initiatives through competitive funding. AVANA Capital is a proud member of the AVANA Family of Companies.

Contact us today to learn more about the financing that’s right for you.