Getting ready to borrow
Sooner or later most businesses need to borrow money. While every lender 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. Be prepared to talk about the following:
What type of loan are you looking for?
- Have you investigated all the alternative types of capital sources?
- Does the term of the loan you are seeking match up with the purpose for which it is being taken out?
- Does the amount of the loan you are seeking match up with your projected cash flow?
What is your business plan?
- Do you have an overall business plan and is it current?
- Does it include important information like major customers, suppliers, and key employees?
- Do you have a current marketing plan and are you following it?
What are your business practices?
- Do you have a credit policy and is it enforced?
- Does your accounting system adequately show the condition and results of the business?
- What is your accounts payable policy? How current are your receivables? Do you take advantage of any discounts for prompt payment?
- What type of insurance coverage do you have? Is there adequate insurance for liability and property damage?
- Are all your tax filings current (payroll, property, income)?
- Are your returns prepared by a qualified professional to help you ensure your tax benefits are maximized?
Documentation you may need when you apply
- Tax returns - both for your company and potentially your personal tax returns.
- Financial statements - last couple of years and year-to-date.
- Cash flow history and projection.
We can help
Visit one of our branches or call us at 1-800-288-3425 to learn how we can help fund your small business.