Loan Checklist

The following list will help you identify the types of information a banker will need to make an informed decision about your business:

• Three years income tax and financial statements
• Year-to-date profit & loss and balance statement
• Personal finance statements
• Projected cash flow statements for next 12 months
• Pro forma for next 12 months / length of loan
• Federal and state tax information
• Collateral sheet
• Well written business plan

Questions to Ask Yourself:

1. Are you and your business credit worthy?
   Your personal and business credit ratings will be analyzed.
   
   
2. What kind of money do you require?
   Short, long, intermediate term money or equity capital.
   
   
3. How much money do you need?
   Present exactly what you need and what it is for.
   
   
4. Do you have sufficient collateral?
   Your collateral must equal the loan amount at a minimum.
   
   
5. What are the lender's rules?
   Ask about loan-to-value and debt coverage ratios.
   
   
6. What kinds of limitations will be set by you?
   Know your comfort level with rate, payment, and term.