Start-Up
Business Owner:
Generally start-up businesses are
financed with a term loan that is fully collateralized.
It may also require a Small Business Administration (SBA) Guarantee if
standard loan underwriting criteria are not met.
You
will need:
*
A Business Plan,
including 2 years financial projections.
The University of Pittsburgh and Duquesne University have Small Business Development Centers
that
can help you create a business plan.
* If you are purchasing an
existing business, then we will need:
1)
A signed
Sales Agreement for the business, showing the assets that will be
transferred with the sale. A
detailed list of assets is required.
2) The last
3 years tax returns or financial statements for the business being purchased.
* If you are purchasing a
franchise, then we will need an offering agreement and the actual franchise
agreement.
* Your last 3 years
personal income tax returns.
* Your Personal
Financial Statement.
* A personal resume.
* A detailed list of any
new equipment you want to purchase.
* If you will be renting
space for your business, then you will need a Landlords Waiver.
Existing
Business Owner (2 years or more):
Generally, these types of loans
include lines of credit and term loans. The
business should have the ability to borrow based on the business’ cash flow
and/or collateral. An established
business may also require an SBA Guarantee if standard loan underwriting
criteria are not met.
You will need:
* Your last 2 years
personal and business tax returns.
*
Your Personal
Financial Statement.
*
A personal resume.
*
If you are purchasing
equipment, then we will need an order form or invoice.
*
If the purchase includes
real estate, then we will need a signed Sales Agreement.
* If you are adding-on or
improving a building or office space, then we will need 3
signed bids for the work to be done.
* If Accounts Receivable is
the single largest or one the largest assets of your company, then we will need
an Accounts Receivable Aging Report. This report should include customer names.
*
If you rent, then we will
need a Landlords Waiver.
Additional
Considerations:
Consult an accountant
about how best to structure and prepare financial statements.
*
Consult an attorney about
how best to structure the business and comply with legal requirements.
*Consult an insurance
agent to price adequate insurance. Types of insurance may include flood, fire
hazard, worker’s compensation, liability, automobile, mortgage, health, life
or other specialized insurance. The
bank will require specific insurance based on the loan request.
*Consult
local, state and federal agencies regarding compliance with regulations on the
environment, access for the disabled, hours of operation, business licenses and
permits, zoning, building codes, parking, outdoor signage and lighting, and any
other special requirements for your type of business.
How do I Print this Page?
To print any of the pages from our web site, first single click in the
middle of the screen, then select print function on your computer.
Return to Business
Financing Options.
