 |
Applying For A Loan:
What Many Bankers Expect
By Stephen Windhaus
You have probably read reams and reams of information about applying for a commercial loan. There are books in every bookstore, library and on the Internet about how to go out and get that mystical business loan. Let me assure you, getting the loan is in no way easy. This column is not designed to show you any tricks of the trade. Rather, there are certain sets of documents you need to submit that impact the banker's decision. Additionally, it is important that you understand there are intangible issues impacting the loan officer's decision.
Let us first begin with a list of documents. It is pretty common knowledge they will include the following:
- A loan application provided by the lending institution. Review a copy of the SBA's 7a loan program application for a general idea of what to expect on the form.
- A personal financial statement from each ownership participant in the company. Again, the SBA personal financial statement form is a rather universal example.
- Documents confirming the legal structure of the business enterprise. Proprietors, having no corporate structure, can assume the application is viewed as a personal loan.
- Signed approval for the lender to access the personal credit history of all company ownership.
- Company IRS returns for the last 3 years.
- Personal IRS returns for the last 3 years.
- Certified copies of company financial statements for the last three years.
- Schedule of all outstanding company indebtedness listing outstanding principal, interest rate, monthly payment schedule and remaining term.
- Copies of any rental and/or lease agreements for real estate and equipment.
- Depreciation schedule of all fixed tangible assets including original value, depreciation formula implemented, useful life and adjusted net value at the present time.
- Aging of accounts payable and receivable.
- A business plan.
|
|
