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FM-01 Loan Support                    SCORE Chapter 570

Bank Checklist

 

A checklist for approaching a financial institution to obtain financing for your business... This list in no way assures you of acceptance or rejection of any application. It has been created by experienced lenders to help you to be prepared when you meet with your banker. The more checks you can put on this list the stronger your application will be.

                                                             

1. Have you sought the advice of others, CPA, lawyer, bank, SCORE?

2. What is the purpose of the loan? New Business, Expansion, Purchase a Business?

                            How much is needed? What will it be used for?        

3. Are you currently employed? Will you remain so? Is your spouse employed?

4. Will you operate from your home? In a present office? Will you acquire an office / place of business?

5. Do you have a current resume?        

6. What experience do you have in managing a business? What experience do you have in Sales, Accounting, Licensing, Taxes (Sales, Income, Unemployment, Etc.)      

7. Do you have all of the following? 3 years of personal financial records and IRS tax returns?

                         3 years of business statements and IRS tax returns?

                         Balance sheets, starting, takeover or proposed expansion?      

8. Have you made a business plan including

                        12 month projected cash flow?

                        Quarterly cash flow for year #2?

                         Does the cash flow indicate the ability to produce a profit after all business and personal expenses including pay back of the financing?   

9. What will the funds be used for?

                        a. Real Estate, Machinery and Equipment, Accounts Receivable, Inventory

                        b. Repay long term or short term debts.

10. What is your financial history? (The past three years and present)

                        a. personal loans

                        b. business loans

                        c. vendors or suppliers

                         Have all payments been made on time?           

11. Do you have a TRW (Credit) report both personal and business?   

12. Have you calculated the total amount needed and supplied cash flow projections?

                          What amount of this is available from your equity?      

13. Have you made a list of your collateral?

Assets:

Cash,

CD’s,

Accounts Receivable,

Inventory,

Real Estate, Residences,

2nd Home,

Commercial property,

Insurance policies, etc.