Getting Ready to Borrow
July 9, 2012
Whether it is a startup or growth phase, sooner or later most businesses need to borrow money. While every loan process may be different, there are several things you can do to make the loan process easier. Most importantly, remember that loan officers are looking at many things, not just your financial record. Being prepared can help make the process easier, less stressful and hopefully improve your chances of getting your loan approved.
Consider the type of loan.
1. Does the term of the loan you are seeking match up with the purpose for which it is being taken out?
Documentation you may need.
1. Tax returns - company and potentially personal tax returns.
2. Financial statements - last couple of years and year-to-date.
3. Cash flow history and projection.
4. Personal financial statement.
1. Do you have an overall business plan and is it current?
2. Does it include important information like major customers, suppliers, and key employees?
1. Does your accounting system adequately show the condition and results of the business?
2. What is your accounts payable policy? How current are the receivables?
3. What type of insurance coverage do you have? Is there adequate insurance for liability and property damage?
1. Are all your tax filings current (payroll, property, income)?
2. Are your returns prepared by a qualified professional to help you ensure your tax benefits are maximized?
Applying for a loan doesn’t need to be a stressful experience. Contact an experienced business banker to get started.
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