Lending partners reviewing a Monroe County, Indiana business usually ask what the money is for, how it will be repaid, how long the business has operated, what its bank statements show, what debts it already carries, and what the owner's credit looks like. Coralbrook Funding, a small-business funding broker in Bloomington, Indiana, explains how to prepare for each question; partners decide.
Why these questions matter here
Almost half of Monroe County, Indiana's employer establishments, 49.4 percent of 3,095, had fewer than five employees in 2023 (U.S. Census Bureau, County Business Patterns 2023). In a business that small, the owner is the person who answers every question, often without an accountant in the room. None of the questions below is a trick, and preparing for them takes an afternoon, not a consultant.
1. What is the money for?
Be specific and attach a cost: a quote, an invoice, a lease, or your own calculation of a cash gap. The answer decides the structure, so it comes first in every review. The six structures compared show how purpose maps to funding type.
2. How will it be repaid?
Point to the cash that pays it back: higher sales from the new equipment, receivables that will clear the gap, savings from refinancing. A short gap repaid from incoming receivables suits working capital; a project repaid from years of earnings suits a term loan.
3. How long has the business been operating?
Time in business is one of the first filters many partners apply. Have the formation date and any earlier history as a sole proprietorship ready, and be accurate; it will be checked against the state record.
4. What do the bank statements show?
Partners read deposits, balances and overdrafts. Recurring overdrafts, large unexplained transfers or a balance that hits zero before each payroll all prompt questions. Look through the last several months yourself first and be ready to explain anything unusual.
5. What do you already owe?
List every loan, lease, credit line and advance, with balances and monthly payments. Partners will find them anyway, and an incomplete list costs trust. An existing merchant cash advance matters especially, because many agreements restrict taking on new funding while one is being remitted.
6. What does the owner's credit look like?
For most small businesses, the owner's personal credit is part of the review, and many partners ask for a personal guarantee. Pull your own reports before applying and correct errors.
7. Is there a business plan?
For a new business or a large project, often yes. A plan for a loan does not need to be long: what the business does, who buys from it, what the money will do, a simple projection of revenue and costs, and how the payments fit. Keep the numbers honest; a partner will compare them with the bank statements.
8. What happens if sales dip?
Some partners ask it directly; others work it out from the statements. Show that you have thought about a slow month: how much cash the business keeps on hand, which costs could be cut, and whether the payment still fits if revenue drops for a quarter. An owner who has run that number already gives a partner more confidence than a projection that only goes up.
What partners are not asking
No reputable partner needs your bank login, and nobody can promise approval before reviewing the file. If someone does either, stop. How a request works shows what a normal review looks like, and the Indiana loan checklist lists the documents that answer most of these questions. Three more Monroe County notes are listed on the Coralbrook blog.
By Coralbrook Funding · Updated
Something to ask Coralbrook in Bloomington, IN?
Unsure which structure fits? Call, or start online.