Tips for Approaching a Lender
Businesses with an existing lending relationship:
Any business experiencing hardship due to the impact of the coronavirus should contact their lender right away about temporary payment modifications or to increase existing working capital lines of credit. Although this is a difficult conversation, it’s better to have it sooner rather than later.
Businesses that are considering financing:
If a business does not currently have a lending relationship with a bank but needs to apply for financing, it is highly recommended that they get their financials in order before making the initial outreach. That means PDFs or copies of the following:
- 2016-2018 complete business tax returns
- 2016-2018 business financial statements (they don’t have to be accountant prepared – Quickbooks Profit & Loss and Balance Sheet reports are fine)
- 2019 year-end Income Statement and Balance Sheet (and tax return if available)
- Current dated Accounts Receivable Aging and Accounts Payable Aging reports
- 2016-2018 complete personal tax returns (state and federal returns including W-2 forms, K-1s, etc.)
- A current personal financial statement for the business owner(s)
For businesses that don’t believe they qualify for traditional financing, Accion Chicago is a reputable non-profit lender based in Chicago offering small business financing and coaching services.
Accion has announced an expedited lending program up to $25,000 for any businesses with a clean credit report in 2019. Rather than conduct a full underwrite of your business, they will set the maximum loan amount based on your monthly revenues in January and February. Click here to apply.
Erik Fjeldstad, SVP-Chief Lending Officer, Forest Park National Bank
Matthew Howe, VP-Commercial Lending, Old Second National Bank