photo banner

Ten Questions to Ask Your Banker When Applying for a Business Loan

  1.  Is your bank a cash flow or collateral lender?
  2.  Describe your bank’s loan process and procedures?
  3. Are loan approval decisions made locally or does the package have to be sent out of the area for consideration?
  4. Does your bank participate in the SBA loan guarantee program?
  5. What is a rough estimate on the amount of time it will take to:
    1. Get the loan package to the loan committee for consideration
    2. If favorably reviewed, the time to get a rate sheet?
    3. If approved, the time to get to loan closing
    4. What has to happen in order to facilitate loan closing?
  6. What documents will I need to bring to loan closing
  7. What is “Key Man” insurance?  Will I need to have this in place prior to loan closing?
  8. What is the current interest rate for your loans?
  9. Will you continue to work with me after the loan closing and what administrative or reporting requirements will I have to accomplish?
  10. 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?

hampton roads chamber of commerce thomas nelson community college small business association george mason university