Answers from Goldpeak Advances in El Centro, California to common questions about funding requests, from what a bank reads in an application to how a credit line differs from a loan.
What Do Banks Want for a Business Loan? An Example With Air Compressors
Banks want evidence that the business can make the payments: two or three years of tax returns, recent bank statements, financial statements and a clear use of the money. For a shop buying air compressors, that use is simple to show with a quote. Banks also look at existing debts and the owner's credit, and often ask for a personal guarantee.
What Do Banks Look for in a Business Loan? An Example With Classroom Furniture
Banks look at cash flow first, then collateral, credit and the business's history. A child care center buying classroom furniture would show enrollment, tuition income, subsidy timing and the furniture quote. The furniture is modest collateral, so cash flow carries most of the weight.
What Do Banks Want to See for a Business Loan? An Example With Walk-In Coolers
A bank wants to see what the money buys and how it pays for itself. For a grocer's walk-in coolers, the quote, the energy or spoilage savings if the owner has measured them, and the store's sales history make the case. A partner reads the same records whether it is a bank or another funding partner.
What Do Banks Look for When Giving a Business Loan? An Example With Fryers
When giving a business loan for fryers, a bank checks the restaurant's deposits, its existing equipment payments and the lease. A lease that ends soon after the loan would raise a question about where the fryers will be used. The contact page has the phone line for questions this page leaves open.
By Goldpeak Advances · Updated
