Basic Requirements for a Loan – Dale Eyeler – Northern California Business Sales

Basic Requirements for a Loan

A current statement, dated within the past ninety days is also necessary, with and aging of accounts receivables and payables and schedule of installment debt.

Furnish list of machinery and equipment, automotive equipment and furniture and fixtures presently owned by the company; cost of each item; was it purchased new or used.

If your business owns real estate, furnish legal description. If your business is buying real estate, furnish contract plus legal description.

If incorporated, furnish copy of certificate and articles or incorporation issued by the secretary of State.

Copy of lease.

History of business

Projection of income and expenses for two years; monthly cash flow for 12 months on business less than one year old.

Resume on all principals, personal financial statements and tax returns on all principals for the past three years.

If you are purchasing a business or affecting a buy-out, furnish a copy of the buy/sell agreement.

If you are buying machinery or equipment with loan proceeds, furnish list of equipment to be purchased and cost of each item.

If there is construction involved, construction bids and a break down of costs, including sales contract.

Hazard insurance policy including fire and extended coverage.

Life insurance in the amount of the loan on the life of each principal.