3 Tips for Preparing a Business Loan Application

From Jim McAlister, Regional Manager, First Bank & Trust Company:

Want to help your banker help you with loan requests? Provide the most current and accurate financial information possible.

Tips for preparing a business loan applicationTip #1

Provide a current and detailed personal financial statement. Current means within the last 3-6 months.  Ask your banker to provide an acceptable personal financial statement form that can be saved on your desktop (password protected).  Include an addendum if you need to. Update your PFS at least twice a year. Be sure to have all owners of assets on the PFS to sign and date the statement.

Tip #2

Track your balance sheet and income statement information monthly. Affordable software programs such as QuickBooks are available to do so. Your bookkeeper or CPA partner may also provide an affordable option. The discipline of tracking your numbers monthly demonstrates to your banker that you are on top of the numbers.

Tip #3

Complete your personal and business income tax returns on time. Provide a copy of your tax returns to your banker if the terms of your loan require annual tax return reporting. Many business owners today extend their reporting to October. When you do extend your tax returns, this means your banker is using information that is nearly a year old to make a credit decision. This is why having current interim financial reporting (Tip #2 above) is so important.

These resources on business bank loans from First Bank & Trust Company may also be of interest:

Have a question about business loans for First Bank & Trust Company? Please contact From Jim McAlister, Regional Manager, First Bank & Trust Company.

Read more from First Bank & Trust Company on Handshake 2.0.

First Bank & Trust CompanyFirst Bank & Trust Company, one of the top community banks in the United States, is a diversified financial services firm with office locations in southwest Virginia – serving Blacksburg, Christiansburg and surrounding areas – northeast Tennessee, and the New River Valley and Shenandoah Valley of Virginia. Financial objectives are addressed by offering free checking products for personal and business accounts, and assessing lending solutions managed by mortgage, agricultural and commercial lending divisions. Comprehensive financial solutions are available through trust and brokerage service representatives. For businesses, First Bank & Trust specializes in business services, including online banking and online billpay, and business loans.

First Bank & Trust Company is a client of Handshake Media, Incorporated, the parent company of Handshake 2.0.

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