Both individuals and businesses continue to face tight credit standards when seeking bank loans. Bank executives like TriState Capital Bank CEO and Chairman James F. Getz have unique insight into what banks are looking for when considering whether a business is a good candidate for a loan. Industry leaders reveal that the most important quality when asking for a business loan is preparedness: A well-articulated, comprehensive business plan is a key component of a successful loan application. Additionally, banks look for a consistent sales record and earnings, an excellent repayment history, as well as a solid understanding of the industry.
Also, when meeting with a loan officer, applicants should be ready with a thorough loan request and all related financial documents, including two years of prior tax returns. It is critical to be honest and forthcoming with your banker when revealing financial information. Throughout the process, it is important to keep in mind that the money with which banks have been entrusted by their clients must be used responsibly, which involves prudent lending; it is ultimately the job of the loan applicants to demonstrate that their business is a good bet.
Also, when meeting with a loan officer, applicants should be ready with a thorough loan request and all related financial documents, including two years of prior tax returns. It is critical to be honest and forthcoming with your banker when revealing financial information. Throughout the process, it is important to keep in mind that the money with which banks have been entrusted by their clients must be used responsibly, which involves prudent lending; it is ultimately the job of the loan applicants to demonstrate that their business is a good bet.