Financial Services

Before applying for a loan, we recommend the following:

• Review your credit reports and those of anyone with 20 percent or more ownership in the business to determine if the information is accurate.  If any derogatory information is reported, take steps to correct or explain that information.  In Michigan every individual is entitled to one free credit report per year from each of the three credit reporting bureaus.  Purchase and obtain your most recent credit scores.  The cost is under $10 and each of the three major credit reporting bureaus issue their own.
• Be prepared to put down up to 30 percent of the money you need to start and run your business.  The lending institution can be expected to provide the remiaining 70 percent.
• Develop a business plan with three to five years of monthly cash flow projections.  The business plan should have a strong executive summary which includes the sources and uses of funds.
• Talk to your business consultant about the types of lenders you should approach.
• Understand the proper way to approach these lenders and what to ask.
• Prepare a personal financial statement (for anyone with 20 percent or more ownership).  Lenders will often provide a form to complete.
• Gather the last three years' tax returns for the business.
• Gather the last two years' of individual tax returns for the business owners.
• Talk to lenders but don't complete any applications until you have chosen a bank.  This way you don't have a lot of inquiries on your credit report.  Multiple inquiries can reduce your overall credit score.