The Loan Process

Initial Discussion

Our initial discussion with you helps our team at First Mid Bank & Trust Agency Finance understand your needs. This first conversation will be an introduction to you, your agency and your goals requiring capital. We like to get a few of the basic metrics of your agency from this conversation and an understanding of what your objectives and expectations are.


Our free application is very simple to fill out. Our application requires general information about your agency including:

  • Name
  • Tax ID
  • Location
  • Ownership
  • Existing Debt
  • Authorization to run credit
  • Summary of commission revenue
  • Application Submission

Once your application is completed, we ask for some preliminary information to help us get you capital as quickly and efficiently as possible. The minimum documents we ask you for include:

  • Credit application
  • Interim Business financial statements for the current year
  • Business tax returns from the past 3 years
  • Personal tax returns from the past 3 years
  • Personal financial statement

Each of these documents is essential for our team to better equip you and your agency in reaching your growth objectives.

Preliminary Terms

In this step we will discuss the preliminary terms including term, interest rate, fees, and general structure of your loan. In most cases, there are no upfront fees.

Complete Underwriting

Once the preliminary terms have been explained and agreed upon, we will proceed to underwrite the loan application. In some cases, we may request more information. This information normally includes contracts with insurance companies and commission reports or statements. In certain cases, we may need further explanations of your financial statements or something on your credit report.

Submit for Credit Approval

We discuss your application and our underwriting and seek credit approval for the loan.

Collect CIP docs

We need to collect documents to verify your identity, verify insurance licenses and set up your bank accounts. Our loan structure requires a redirect of commission directly from insurance companies to cover loan payments, so we set up a new account at First Mid Bank & Trust to accept those commissions. Documents we need in this process include:

  • Insurance Licenses: individual & business
  • Driver’s License
  • If incorporated (either LLC or S Corp), Articles of Organization and Operating Agreement or Partnership Agreement
  • If C Corp, Articles of Incorporation and Bylaws
  • Corporate Authorization Form

Loan Documents Prepared and Executed

Once our team has the documents needed from your agency, we will overnight a package of loan documents for signature and have our closing call with you.

Assignment/redirects confirmed

We will ask you to make appropriate changes and provide confirmation from your carriers that any required commissions will now be redirected to the new bank account. Click here to view our diagram for our loan and commission collateral structure.

Other closing conditions

Sometimes in certain transactions like acquisitions, we need to receive other information prior to funding the loan. An example may be a copy of an executed purchase agreement or seller note.


Upon completion of all closing conditions, we disburse the loan proceeds to the appropriate parties.

Every situation is different, and we work diligently to be responsive to your timeline. You play an important role in the timeline by providing the requested information in a timely manner. Within 45-60 days you could be fully funded and ready to invest back into your agency.