Loan Preparation Questions

Business Planning

  1. What products/services does your business offer?
  2. What are your revenue expectations over time? How many units do you have to sell and at what price to reach those expectations?
  3. What are the expenses of the business?
  4. 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?
  5. Who are your customers, and how do you define your target market?
  6. How are you planning to market to your customers?
  7. Who is your competition, and how are you different?
  8. If your business is in a commercial space, where is it located? What are the terms of your lease?
  9. What systems do you have in place to manage your financials? Your employees?
  10. Do you have all the required permits and licenses for your business?
  11. 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?

  1. What specific items would you purchase with a loan?
  2. If you're looking for "working capital," what is happening in the business (new expansion, unexpected losses) that is causing the need?
  3. What assets (inventory, equipment, cash) and liabilities (accounts payable, credit cards, loans) does your business currently carry?
  4. How much money are you able to contribute to the business from savings and/or home equity?

Personal Finances

  1. What are all sources of income into your household?
  2. What are all the expenses of your household?
  3. Is your household income sufficient to cover all household expenses?
  4. 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?


  1. What is your credit score?
  2. What is your impression of you credit score and what are your plans to improve your score over time?
  3. Do you have any recent late payments or accounts currently in collection?
  4. Have you ever declared bankruptcy? If so, explain what was happening in your life at the time.
  5. 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