<p style="margin: 0in 0in 10pt;">Given the current economic situation facing our country, it is more important than ever to have a complete and well prepared loan package when approaching a lender for a loan. Below you will find the components of a typical business loan package.<span style="mso-spacerun: yes;"> </span>This does not cover everything a potential lender may ask for, but will get you off to a great start!</p>
<p style="margin: 0in 0in 10pt;"><strong style="mso-bidi-font-weight: normal;">Executive Summary</strong></p>
<p style="margin: 0in 0in 10pt;">The executive summary is the proposal that explains what type of loan you are seeking and why.<span style="mso-spacerun: yes;"> </span>The executive summary should contain enough information for the lender to understand your request, and any important details that should be known up front. <span style="mso-spacerun: yes;"> </span>The executive summary is NOT you business plan, but simply a 'snapshot' of your loan request.</p>
<p style="margin: 0in 0in 10pt;"><strong style="mso-bidi-font-weight: normal;">Personal Financial Information</strong></p>
<p style="margin: 0in 0in 10pt;">Most small businesses will be required to personally guarantee their loans, and this is especially true in today's market.<span style="mso-spacerun: yes;"> </span>In addition, good credit is usually mandatory (but not always). The following personal information should be included in your loan package.</p>
<ul>
<li>
<div style="margin: 0in 0in 10pt;">Personal Financial Statement - Current <span style="mso-spacerun: yes;"> </span>and for Each Owner/Guarantor</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Personal Tax Returns - Most Recent 3 Years for Each Owner/Guarantor</div>
</li>
</ul>
<p style="margin: 0in 0in 10pt;"><strong style="mso-bidi-font-weight: normal;">Business Financial Information</strong></p>
<p style="margin: 0in 0in 10pt;">Lenders will need to have a good understanding your business, and its history.<span style="mso-spacerun: yes;"> </span>If you have a current business plan, that will usually work, if not, you should provide detailed information in your Executive Summary. </p>
<p style="margin: 0in 0in 10pt;">The following business financial information should be included in your loan package:</p>
<ul>
<li>
<div style="margin: 0in 0in 10pt;">Business Tax Returns - Most Recent 3 Years<span style="mso-spacerun: yes;"> </span>for Each Entity</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Profit & Loss – Most Recent 3 Years for Each Entity</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Profit & Loss – Interim (YTD) for Each Entity</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Balance Sheet – Most Recent 3 Years for Each Entity</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Balance Sheet – Interim (YTD) for Each Entity</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Business Debt Schedule – Current (shows loan balance, payments, rates, terms, etc.)</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Business Projections (usually for SBA loans)</div>
</li>
</ul>
<p style="margin: 0in 0in 10pt;"><strong style="mso-bidi-font-weight: normal;">Real Estate Transaction Information</strong></p>
<p style="margin: 0in 0in 10pt;">In the case of real estate secured loans, the following information is necessary:</p>
<ul>
<li>
<div style="margin: 0in 0in 10pt;">Real Estate Purchase & Sale Agreement (purchases only)</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Real Estate Operating Statement (investment properties)</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Property Rent Roll (investment properties)</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Property Operating Statement – Most Recent 3 Years<span style="mso-spacerun: yes;"> </span>(investment properties)</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Property Operating Statement – Year To Date<span style="mso-spacerun: yes;"> </span>(investment properties)</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Property Leases (investment properties)</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Real Estate Appraisal (if available, but will usually be ordered by the lender)</div>
</li>
<li>
<div style="margin: 0in 0in 10pt;">Tax Statement with Legal Tax ID #</div>
</li>
</ul>
<p style="margin: 0in 0in 10pt;">An accurate and complete loan package will get a quicker decision from the lender, allow you to ‘shop’ your request more quickly, and can lead to better rates and terms upon approval.</p>
2008-11-14T19:35:34Z
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2008-11-17T20:37:51Z
2008-11-17T20:37:51Z
In today's market, a good loan package is more important than ever. With fewer lenders actually lending, a well prepared and accurate loan package will lead to quicker decisions, better terms, and less stress!
A Good Business Loan Package - More Important Than Ever!
0
2009-02-24T09:47:11Z