Items Needed for a Typical Bank Loan
Request of Less than $1,000,000.
If you are going after a small business loan, there are a few things all lenders want to see. These items are listed below, along with the tools you need to put the whole package together! Just click the dark-blue hyperlinks to review many of the tools online. We have been using these tools for many years with great success!
- Free Tools:
- Personal Financial Statement
Business Plan Narrative
Previous Years Tax Returns
Resumes for all Senior Executives
Click Here to buy a permanent multi-user license online.
The single-user license has been removed temporarily, but this option will return this summer as an online subscription.
PERSONAL FINANCIAL STATEMENT (PFS):The PFS will be required for every major shareholder of the business venture. You will basically list all your personal assets and liabilities. Banks usually accept your personal estimate for the value of real estate and large assets, as long as your assessment is reasonable and your calculations are documented.
Our PFS includes ideas and procedures for appraising a business using rule-of-thumb valuation methods. The bank should accept your valuation for a smaller loan if it is prepared in a professional manner.
PROJECTED FINANCIAL STATEMENTS:We provide the most comprehensive, sophisticated and user-friendly template available. This Financial Modeling Software will save you thousands of dollars, and cut your preparation time by at least 50%!
In most cases, the bank wants to see 3 years of historical financial statements, and 1 to 3 years of projections. You should include an explanation of how you came up with the numbers used in the projection.
Our financial modeling tool provides all that and more! It works perfectly as a business plan for small business loans. You need only write a one page narrative about your company and insert it behind the table of contents! For larger loans; just integrate this package with the Business Planning Narrative below.
We have used these tools for many years to create business plans that were sold to customers for as much as $20,000.
A SMALL BUSINESS PLAN NARRATIVE:The smaller narrative is free of charge. If the loan is for less than $1,000,000, the SBA and the bank will probably not be interested in seeing the larger business plan.
Our narrative is designed to integrate with the Financial Modeling tool, but you can use another set of projected financial statements with it if you wish.
PREVIOUS YEAR's TAX RETURNS:Lenders will likely require the company's returns for the previous 3 years, and the major shareholders' returns for the previous 1 to 3 years. If the company is new, they will still want to see the shareholders' returns.
RESUMES FOR ALL SENIOR EXECUTIVES:This helps provide the lender assurance that the company has good intellectual and management infrastructure. Some Lenders donít require this information, but they all should!
These resumes should include officers' accomplishments and skill-set. You should strongly emphasize that each officer has the qualifications and drive to ensure the companies success.
Resumes can be integrated into the business plan, or they can be attached as an addendum.
I wish you all success as you endeavor to create or expand your business. Go make it happen!