Baypark Commercial Capital in Big Spring, Texas publishes guides on the Texas Railroad Commission P-5 report, Big Spring, TX zoning and building permits, and an oilfield equipment loan calculator. This page also covers a loan documentation checklist, a cash flow forecast and what a business plan for a loan request contains.
Commercial Loan Documentation Checklist for a Big Spring, TX Request
- Business bank statements for every account, for the months a partner names.
- The last two business tax returns and the owner's personal returns if asked.
- Profit and loss for the year so far, with a current balance sheet.
- An accounts receivable aging report, if the business bills on terms.
- A schedule of existing debts: lender, balance, payment and collateral.
- Formation documents and any assumed-name filing.
- The dealer quote on a unit, or the agreement on a business purchase.
Cash Flow Forecast for Loan Applications From Howard County, TX Firms
A forecast lists expected money in and money out by month for the next three to twelve months, with the new payment included. It shows the partner, and the owner, the tightest month. Base receipts on when customers actually pay, not on invoice dates. The working capital page has a worked three-month example.
A Cash Flow Forecast in the Loan Application Process, Step by Step
- Start from last year's monthly bank deposits and withdrawals.
- Adjust for known changes: a new contract, a lost customer, a price change.
- Add the proposed payment to every month.
- Mark any month where cash falls below what the business needs on hand.
- Bring the forecast to the first conversation; a partner may ask for it.
Business Plan for a Loan Application: What Goes In
For an established business, a plan for a funding request can be short: what the money buys, what it is expected to earn or save, the forecast, and who runs the business. A buyout plan adds the seller's history and how the buyer will run it. The term loan page covers acquisition requests, and the articles go deeper on specific purchases.
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