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Home > Financing > Loans > 10 Questions

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

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/disapproval decisions made locally or does the package have to be sent out of the area for a decision?
4. Does your bank do SBA guaranteed loans? If so, is the bank a PLP (Preferred Lender Program) or CLP (Certified Lender Program) Lender?
5. What is a “ballpark” figure on the amount of time it will take to:
   • Get the loan package in front of the credit committee?
   • If favorably reviewed, time to get a rate sheet?
   • If approved, time to get to loan closing?
   • What has to happen prior to loan closing?
6. What documents will I need to bring to loan closing?
7. What exactly is “key man” insurance? Will I need to have this 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 do for you?
10. If the business fails and the fulfillment of the loan is in jeopardy, what can/will be done by the bank? What will/can I be able to do?