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Wednesday, December 6, 2023

Fiscally Responsible in 2012


Looking for a business loan?  Show where you’ve been and where you’re going

Business lending has changed significantly in recent years.  With the affects of the recent recession still lingering, tighter credit standards and more stringent banking regulations are now the norm.  As a result, there’s no question that the business loan application process is more daunting.

So what’s the secret to a successful application?  Key is the ability and willingness to share good information with your banker.  A borrower should provide at least 3 years of business financial statements and tax returns.  In addition, a guarantor will be expected to provide a recent, comprehensive personal financial statement and 3 years of personal tax returns.  Additional information may be required that’s specific to the type of loan being sought.

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Make sure the application package is complete and accurate.  Your bank will look at past operating results to determine an historic ability to repay the amount of debt the loan will incur.  The bank will also review trends including revenue growth, margins and profitability.  Not all information can be gleaned from a piece of paper, so make sure to explain what’s driving trends, changes or one-time events affecting financial performance.  Full disclosure assists the banker in interpreting what he/she sees in your financial statements –leading to faster response and a better loan decision.

The key to ensuring the smoothest and quickest loan application/approval/closing process possible is open communication and an accurate and complete loan application package.  Remember that your banker can only effectively advocate for your business loan request if he/she understands your business – where it’s been and where it’s headed.

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Jason Nagel
Jason Nagelhttp://www.banknaperville.com
Jason Nagel is Vice President of Commercial Banking at Naperville Bank & Trust. Contact him at (630) 369-3555 or jnagel@banknaperville.com.


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