Business owners and executives obtain capital for various business needs. The business owner typically has two main options: debt financing and equity financing. Many companies use a combination of both debt and equity financing. Debt financing requires repayment whereas equity finance does not require repayment.
The main benefit of debt financing is that the business owner does not have to give up control of the company. Traditional business debt is also relatively inexpensive and the interest payments are tax deductible.
If you are unsure regarding the best solution for your business, we are here to help you determine the best deal structure given your unique situation.
When you are ready to source a lender for your various capital needs, it is very helpful to have all of the necessary documents ready to be presented to the bank.
A Loan Documentation Checklist is provided below to be used as a guide. This will allow the loan application process to go smoothly providing you with a quick turnaround.
When you have familiarized yourself with the documents that are needed to underwrite your business loan request, visit our blog, “Becoming an Ideal Business Banking Client” which speaks to the credit standards that banks typically use to assess the credit risks of each borrower.
To learn more about LonaRock, LLC and our debt finance consulting services, please visit our website at www.lonarock.com or contact us directly at 234-217-9033. We look forward to helping you become an ideal business client and helping you obtain the best possible financing for your company!
Commercial Loan Documentation Checklist
- Executive Summary explaining the Purpose of the proposed Transaction
- Articles of Incorporation and Basic Business Information (Name, EIN, Address, Etc)
- Recent Business Bank Statement
- Three Years of Business Financial Statements (Compiled, Reviewed or Audited)
- Three Years of Business Tax Returns
- YTD Interim Business Financial Stmt Including Comparable from prior year
- Business Debt Schedule
- Financial Projections (if applicable)
- A/R Aging, A/P Aging and Inventory Report (if applicable)
- Borrowing Base Report (if currently required on bank loan)
- Executive Management Bios/Resumes
- Background information regarding the business, management, competitive landscape etc.
- Three Years of Individual Tax Returns (including K-1s)
- Personal Financial Statement (Current)
- Invoice or Purchase Order for New Equipment (If Applicable)
- Rent Roll and Schedule of Real Estate (If Applicable)