This page from Canyonmoor Lending Group in Montrose, Colorado explains how a business funding request moves: the first conversation, matching the purpose to a funding type, a funding partner's review and the owner's decision. It covers what banks look at in a loan request and what partners read in business bank statements and tax returns.
How Do Business Loans Work Once a Montrose, CO Request Is Sent?
- Conversation: by phone or after the web form, the owner describes the purchase or the gap, its price and how the money comes back.
- Shortlist: the purpose is matched to one or more of six funding types, and the likely records are named.
- Partner review: a funding partner that considers that kind of request reads it, asks for the records it needs and decides whether to make an offer.
- Owner's decision: any offer arrives in writing with its amount, price, schedule and security; the owner accepts it or declines.
Canyonmoor Lending Group handles the first two stages and passes the request on. The third belongs to the partner, and the fourth to the owner alone. The web form or a call to (970) 238-5206 starts the first.
What Do Banks Look at for a Loan to a Firm Under Five Employees?
In Montrose County, CO, 853 of 1,501 employer establishments had fewer than five employees in 2023 (County Business Patterns 2023). For firms that small, the owner and the business are read together. Banks and other partners look at five things: the business's cash flow, the owner's credit, time in business, the purpose of the money and, for secured products, the collateral.
Cash flow is read from deposits and returns, credit from a report the partner pulls with the owner's permission, and the purpose from the quote, contract or invoice behind the request. A clear purpose with a named repayment source carries weight that no single number can.
What Lenders Look for in Business Bank Statements: Deposits, Balances and Returned Items
- Total deposits each month, and whether they come from many customers or a few.
- The smallest daily balance in each month, not only the closing balance.
- Returned items and overdraft fees, which signal tight months.
- Payments to other funders, including daily or weekly debits from advances.
- Transfers between personal and business accounts.
Illustration only, invented figures: a shop averages $46,000 in monthly deposits, but its leanest month brought in $31,000. A partner tests any new payment against that invented $31,000 month, because that is the month the payment has to survive.
What Lenders Look for on Tax Returns From a Sole Proprietor or LLC
Returns show profit after expenses, which deposits cannot. A sole proprietor's business schedule, an LLC's partnership return or an S corporation's return each show revenue, costs and net income, and the owner's personal return shows how much the owner takes out. In Montrose County, CO, 18.3% of employed residents are self-employed (American Community Survey 2020-2024), so the personal return carries real weight in many reviews.
A partner compares the returns with the statements. Large gaps between deposits and reported revenue raise questions; a written note explaining a one-off, such as an equipment sale, answers them before they are asked.
Where the Owner's Decision Comes In, and What to Read
An offer is not an obligation. Before accepting, set the total cost in dollars beside other options, find the collateral and any personal guarantee, and read the default and early-payoff clauses. The FAQ covers missed payments and maturity dates, and the comparison page sets the six funding types side by side.
The article on what banks look for before giving a business loan expands each of these stages into a checklist.
By Canyonmoor Lending Group ยท Updated