Colorado Business and Legal Advices

The approval of your application depends not only on how you substantiate your financial needs, but also the image that you present yourself and your business. Remember, lenders want to make loans, but approve those who have greater assurance that will be paid. The best way to improve the chances of getting a loan is to prepare a written request.

A good loan application shall contain the following elements:

Business name, names of owners, social security number of each partner and the business address.
The purpose of the loan, the exact use of funds and why they are requested.
The required amount, ie the exact amount you need to achieve your purpose.
Business description, history and the type of business business details, such as their age, the company’s turnover, number of employees and current business assets.

The structure of the business – the kind of society and the details of the legal structure of the company.

Profile Management – Develop a short statement from each of the directors of your business, including background, education, experience, skills and achievements.

Market Information – Clearly define your company’s products and their markets. Identify your competition and explain how your business competes in the market. Profile your customers and explain how your business can meet the needs of these.

Financial Information – Financial Statements – financial statements and income statements for the past three years. If you are starting your business, provide the states and projected income statements. Personal financial statements from you and other business owners.

Collateral you would be willing to put as collateral for the loan.

In reviewing the loan application, the lender’s main concern is the capacity payment. To assist in that decision many lenders will request a credit reporting agency a copy of your credit history to determine their behavior to make their payments. Therefore, it should work with these agencies to help them present an accurate picture of your business. By using the credit history and the information you have provided, the lender will take into account the following considerations:

Have you invested savings or personal assets in your business totaling at least twenty-five to fifty percent of the loan being requested? (Remember, a lender will not fund one hundred percent of your business.)
Do you have a solid credit history reflected in your credit report, work history and letters of recommendation? This is very important.

Do you have the experience and training necessary to successfully manage a business?
Have you prepared a loan application and business plan to demonstrate their understanding and commitment to business success?
Does the business have sufficient cash liquidity to make required monthly loan payments?

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