Ten Questions to Ask Your Banker When Applying for a Business Loan
- Is your bank a cash flow or collateral lender?
- Describe your bank’s loan process and procedures?
- Are loan approval decisions made locally or does the package have to be sent out of the area for consideration?
- Does your bank participate in the SBA loan guarantee program?
- What is a rough estimate on the amount of time it will take to:
- Get the loan package to the loan committee for consideration
- If favorably reviewed, the time to get a rate sheet?
- If approved, the time to get to loan closing
- What has to happen in order to facilitate loan closing?
- What documents will I need to bring to loan closing
- What is “Key Man” insurance? Will I need to have this in place prior to loan closing?
- What is the current interest rate for your loans?
- Will you continue to work with me after the loan closing and what administrative or reporting requirements will I have to accomplish?
- If the business is failing and the fulfillment of the loan could be in jeopardy, what can/will be done by the bank and what can/will I be able to do?
