Loan Preparation Questions
- What products/services does your business offer?
- What are your revenue expectations over time? How many units do you have to sell and at what price to reach those expectations?
- What are the expenses of the business?
- What does the cash flow model of the business look like - when do you have to pay for expenses and when will you be paid for your products/services?
- Who are your customers, and how do you define your target market?
- How are you planning to market to your customers?
- Who is your competition, and how are you different?
- If your business is in a commercial space, where is it located? What are the terms of your lease?
- What systems do you have in place to manage your financials? Your employees?
- Do you have all the required permits and licenses for your business?
- If you are acquiring an existing business, what is the acquisition price based on? Do you have copies of the previous owner's tax returns and/or financial statements?
Is a Loan the Right Answer?
- What specific items would you purchase with a loan?
- If you're looking for "working capital," what is happening in the business (new expansion, unexpected losses) that is causing the need?
- What assets (inventory, equipment, cash) and liabilities (accounts payable, credit cards, loans) does your business currently carry?
- How much money are you able to contribute to the business from savings and/or home equity?
- What are all sources of income into your household?
- What are all the expenses of your household?
- Is your household income sufficient to cover all household expenses?
- If you own a home, what kind of mortgage do you have? Do you have any equity available to use as collateral? If you have a negatively amortizing loan, what are you plans to manage your monthly payment if/when your bill increases?
- What is your credit score?
- What is your impression of you credit score and what are your plans to improve your score over time?
- Do you have any recent late payments or accounts currently in collection?
- Have you ever declared bankruptcy? If so, explain what was happening in your life at the time.
- How much credit card debt do you currently carry? Are you trying to consistently pay down your principal balance?
Small Business Assistance Center, City Hall, Room 110, 1 Dr. Carlton B. Goodlett Place, San Francisco, CA 94102
Phone: 415-554-6134 Office Hours: M-F, 8 AM - 5 PM