Post a new topic
    2 Replies Latest reply on Oct 10, 2007 11:12 AM by Comptank

    Bank Loans and what you need

    rowlandf Newbie
      *
      August, 2007

      Checklist when applying for a loan: SCORE Chapter 0549

      Attach a letter or statement citing the amount you want to borrow and the purpose of the loan, including where and how the money will be used.

      Attach a financial statement for yourself and all other borrowers to support your ability to repay the loan. Include copies of your credit reports if available.

      Attach your resume or add a statement outlining your business experience.

      Attach copies of your personal income tax returns for the past 2 years.

      Most Important: Develop cash flow projections - 2 years preferred. Identify the funding you will need for the start up phase and demonstrate an understanding of the "break even" concept.

      Collateral: Identify the amount of capital (cash) or other property that you will use as collateral for the loan.

      Address potential factors that could have a negative effect on your business (i.e., impact of higher gas prices or weather related catastrophes).

      Identify the intended business structure and attach copies of your Business License and Articles of Incorporation.

      Attach a copy of your Business Plan which should include the above; a marketing plan; an analysis of the competition; industry statistics; a Projected P&L (2 years); and a statement about staffing availability.

      Identify other personal funds that you could use as a "fall back" if needed.
        • Re: Bank Loans and what you need
          ScubaDive Wayfarer
          This seems like a pretty good list. Addressing the potential factors that could have a negative effect on your business is probably the one area people think about the least. Focusing on risks and assessing potential threats is probably one of the most important exercises in assessing failures. Its kind of funny that in order to succeed you have to think so much about what can cause you to fail. This list is helpful. Thanks.
          • Re: Bank Loans and what you need
            Comptank Newbie
            I had posted a question prior to seeing your posting. A very informative posting. Could you please read my question under "Loan Options" from CompTank and reply? I would greatly appreciate it...Thanks