FINANCIAL REQUIREMENTS
Provide a financial proposal. Be specific when you outline how much money is required. Include uses for the funds, supplier quotes, proposed repayment terms, sources of repayment for the loan (cash flow) and collateral. Owners should have a clear understanding of their financial requirements including likely terms, conditions and other required supporting documentation. You are more likely to receive financing if you understand the lending process and make it easy for your banker to review your request.
Provide a commentary on what you want to purchase and why. Show how the funds will benefit your company and prove that you are able to repay the loan.
Provide commentary to any extraordinary items on the financial information of the business and personal credit of the owners. Bankers do not like surprise. This may include an explanation on your accounts receivable terms, an item showing late payment on your credit bureau or other items specific to your company.
It is advisable to research different types of loans to understand the requirements and terms prior to meeting with an account manager at your bank. We strongly encourage you to discuss the implications related to borrowing funds with your accountant and lawyer. Although most bank security forms are standard, it is strongly encouraged to have a lawyer review and explain the documents prior to signing.
Final Step
Make sure you review your business plan regularly and make necessary updates.
Happy planning!
CreditSunrise
At CreditSunrise.com, we assist entrepreneurs like you to create a working document to guide your business. Our services include custom business plan preparation, business plan review and source financing. We service small and medium size businesses in the United States and Canada.
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