Business Loans for Start-Ups

In Handshake 2.0’s series on business bank loans, we asked Kelly Kendrick, Assistant Vice President of First Bank and Trust Company for self-assessment questions companies could ask themselves about whether or not a bank loan would be a good fit for them, and questions to ask a business loan bank officer about the terms of the loan.

For entrepreneurs with start-up companies, we asked Kelly Kendrick, “What are three pieces of advice you would give to a start-up business on deciding whether or not to apply for a business loan?”

Kelly Kendrick answered:

The challenge that start-ups face when applying for a bank loan is that the primary source of repayment – the start-up’s business income – will not be enough to cover the loan.  Before considering applying for a business loan:


  1. Make sure you have thought out and have on paper a comprehensive business plan. This plan should include what your bank loan would be used for and how it would help the business grow.
  2. Invest personal equity into your company. As some like to say, “You have to have skin in the game.” A bank will be hesitant to put its money in you if you don’t put your money in first.
  3. Assess your personal financial situation.  To increase a bank considering your start-up an acceptable risk, does your financial situation offer any mitigating factors such as additional liquidity, a secondary source of income, or collateral?  If there are mitigating factors, the bank may feel more comfortable taking on the risk.

For more information, you’re invited to view The Basics of Business Bank Loans (.pdf) from First Bank and Trusty Company.


First Bank & Trust Company, one of the top community banks in the United States, is a diversified financial services firm with office locations in southwest Virginia, northeast Tennessee, and the New River and Shenandoah Valleys of Virginia.  Financial objectives are addressed by offering free checking products for personal and business accounts, and assessing lending solutions managed by mortgage, agricultural and commercial lending divisions.  Comprehensive financial solutions are available through trust and brokerage service representatives.

For businesses, First Bank & Trust specializes in business loans, business credit, and business finance.

You’re invited to read more about First Bank & Trust Company on Handshake 2.0.  First Bank & Trust Company is a client of Handshake Media, Incorporated, the parent company of Handshake 2.0.

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