The Business Loan – Funding Request Checklist

For most entrepreneurs, securing a business loan is an exciting step. It means you’ve launched your company, have a product or service you think you can scale, have a few customers to get you off the ground, and can see a promising future that involves monetary success.

Asking for money, though, can be little daunting. True startups—those that have an idea and no product or customer—often turn to angel investors or go to the Small Business Administration (SBA) first for financing.

“Normally, startups don’t find their first round of financing at a bank, unless the company already has an outside source of income,” says Antoine Smith, Chairman & CEO of Smith Gruppe.

Smith Gruppe maintains a huge resource of Alternative To Bank Financing Programs that can give established companies a much-needed financial boost and help them get to the next step— whether it’s hiring another employee, purchasing new equipment, expanding a product line, or moving into a new office space.

Here, we break down a few things to bring to your business loan meeting with us.

Your Resume And Company History

We will want to know more about you, your management team and the origin story of your company before sourcing and identifying the right capital stack and fund your request. It’s a good idea to provide this in a written format (PowerPoint is also acceptable)—explain the resumes/titles of everyone on your team, the history of your company and why you are looking for a loan. It’s also important to present a well-thought-out business plan (doesn’t have to be the War & Peace Format – A concise One-Page Business Plan is the New Normal).

Annual Company Financial Statements

“We will want to see three years worth of annual financial statements,” says Smith, adding that we often prefer professionally prepared financial statements. “Many of our investor/lenders will have thresholds for size; a really small loan won’t necessarily require a high-quality financial statement done by a CPA; however, any request over $250, 000.00 will require a professionally prepared high-quality set of financials. But a larger company asking for a larger loan—those will often require audited and professionally prepared financial statements.”

Simply handing over your financial statements (this includes tax returns) isn’t enough. These statements need to show your company’s track record, that you’ve been making (not losing) money, if you’ve previously enlisted the help of outside investors, etc.

Smith Gruppe can help you with structuring your loan documents to ensure funding – Contact Us Today – 980-221-9377!

Personal Financial Statements And Income Tax Returns

Entrepreneurs who solely own their business are often required to take “personal recourse” (i.e. collateral) for the repayment of loans.

“This means he or she will be personally responsible if the company can no longer pay down the debt; the business owner will need to sign a guarantee of debt,” Smith says.

For this reason, entrepreneurs must hand over their own financial statements and personal tax returns as part of the loan process to ensure that they have the right amount of assets (homes, cars, etc.) to allow the investor/lender to recoup the loan, should anything go wrong with the business.

Smith Gruppe, through its Access To Capital Programs offers both Recourse and Non-Recourse loans that require no Personal Guarantees; neither do we require extensive PFS (Personal Financial Statement) requirements. In many cases, PPE (Personal Property and Equipment), existing Cash Flows, and/or an existing Contract can act as your “collateral”.

Legal Documents

Bring any licenses, contracts, leases or business registrations to your business loan meeting. A business development/loan officer will want to see that you’ve kept meticulous records of all transactions.



Bonus Tip: Pay Attention To A Loan’s Structure

Business loans vary wildly, so it’s important to do your homework in advance and come prepared with questions.

“Often business owners are surprised by the structure of a loan,” says Smith. “A line of credit may have a five-year maturity or sometimes even a one-year maturity, which is when you must pay back the loan. It’s also good to know the difference between a line of credit, which involves working capital; and a term loan which can involve equipment purchases and real estate purchases.”

How To Build A Corporate Team Step-By-Step

Sometimes it’s not clear how cross-team projects should be launched, function and proceed.

Follow these simple guidelines for accomplishing as a group what individuals on your team could not accomplish alone.

First, set up your basic parameters: a goal for the next meeting; roles; and type of discussion (e.g., brainstorming vs. goal setting). Be sure to include any earlier discussion points and agreements.

Then use the following framing questions. First ask:

  • Where are we so far?
  • Can we report the status of the project’s main elements, listing and including everything we know?
  • What do we want to achieve at this meeting, specifically?

At the next meeting, ask:

  • What is the best way to reach and/or exceed our goal for this meeting?
  • Should we brainstorm or share what we’ve learned and  what we’ve prepared?
  • How should we best think this through as a group, inclusive of everyone’s input?
  • Let’s throw out a few options and work out how to move the needle forward?

Finally, make assignments and tap the energy of the group.

  • what are our “Action Items” moving forward?
  • Who is the best person to focus on each particular “Action Item”?
  • How do we make this happen?
  • What’s our deadline? (This is essential in order to avoid a myopic approach to task assignments)
  • Next Steps?

Learn more Here!