Knowing how to position yourself as a viable investment for lenders requires planning and preparation. Here are some tips to help enable your lender to give you a quick decision on your loan application (for loans over $350,000).
- Provide a summary of how much you want to borrow and how you will use the loan proceeds. Be sure to include the amount of your equity injection and where it will come from.
- Describe the products and/or services your business offers including how long it has been in operation and what the ownership make up is as well as your plans for the future.
- Past 3 years of business tax returns as well as an interim profit and loss statement and balance sheet.
- Personal financial statements and 3 years of personal tax returns for all owners with 20% or greater ownership.
- Resume or bio on all owners with 20% or greater ownership. This is your opportunity to tell your story.
- Pull your personal credit score, review for accuracy and be prepared to provide an explanation of any derogatory items.
If your loan request is $350,000 or less, Stearns Bank has a FASTTrack Same-Day Approval which only requires a Personal Financial Statement and 1 year business tax returns. If it is a start-up we also need 1 year projections that show positive cash flow to get you a credit approval answer within hours!
Being better prepared and providing your lender with the tools they need will result in a greater likelihood of getting that quick YES on your next loan request.