A business owner may require extra financial assistance at times. They may look to a bank for this assistance. To receive a business loan from a bank, business owners will need to take certain steps to meet specific requirements. To learn more about this process, do not hesitate to contact our experienced public accountant. Continue reading to learn what a banker will require for a business loan. Here are some questions you may have:
What does a banker need?
Bankers will require the following information when applying for a business loan:
- A written request for a specific amount
- An explanation of the use of the funds
- A projection of how and when the loan will be repaid
- A list of the collateral that is being offered as a security for the loan
Bankers will also require to know what will happen in the event that the individual applying for the loan becomes disabled or dies. For example, you may include if you have a disability, life, or general liability insurance.
What should a banker know for a business loan?
When a banker receives an application for a business loan, they will also look for the following further information:
- The financial history of the company
- This will be provided in the form of company balance sheets and profit and loss statements for at least the last three years.
- A realistic projection of profits and a twelve-month cash flow projection.
- This spreadsheet should show the specific month cash will be received from sources and the month-specific disbursements that need to be made.
- Information regarding your personal business experience.
- The company plan that outlines where the company will be in several years.
- This is in terms of size, types of products or services, number of employees, locations, etc.,
- This will give the banker some insight into your long-range planning.
- Personal tax returns for each major owner of the business for the past three years
If you have any further questions about preparing for a business loan as a business owner do not hesitate to contact our experienced accounting firm. Our firm can assist you, no matter the circumstances. Give us a call today to learn more about our services. Our Certified Public Accountant firm has served clients throughout New Jersey regarding any of their financial needs. To get started today, schedule your initial consultation today. We are looking forward to hearing from you.
Contact our experienced New Jersey firm
Werdann DeVito LLC is an experienced Certified Public Accountant firm serving clients throughout New Jersey with all of their financial needs. If you need quality assistance with accounting, tax, or consulting services, contact Werdann DeVito LLC today.