BRINKLEY MORGAN Partner, Philip J. Morgan, Authors Article Entitled: "Need a Loan? Do Your Homework"

Feb 26, 2011 -- Need a Loan? Do Your Homework

Despite the changed lending environment, bank loans are available, but you must be prepared by knowing yourself, knowing your business plan, and getting to know a good banker who will believe in you.

To start the process, at a minimum, the lender will want to see the following information:

1. Personal Financial Statement
2. Tax returns for past 3 years (with all schedules, attachments and K-1 statements)
3. Profit and Loss Statement for 3 years
4. Organizational documents for your business whether it is a P.A., a corporation, partnership or limited liability company.

Just as important as your financial information, before you make the first call to a lender, focus on how you will present your business plan, the purpose of the loan and how that fits in your business plan. This applies equally to real estate or business loans.

Your business plan should include:

1. How you will convince a lender that you are personally committed to the project or business
2. Your background to be successful
3. The market need for your product or services
4. Projected profit and loss for 3 years

Now with the homework complete, the last step and potentially the most difficult one in this process is establishing a dialog and relationship with a lender who will believe in you first and your business or project a close second; and who will guide you through the loan process. Finding the right banker for you is no different than finding other professionals. Word of mouth recommendations from friends and other professionals normally works best. Interview more than one. If you have done your homework and your business plan makes sense, you will find a good banker that has faith in you and will be anxious help you get your loan approved.

Philip J. Morgan has practiced real estate law for more than 35 years, handling all types of commercial and residential transactions and the title insurance of those matters. His primary concentration has been working with lenders to bring to successful conclusion loan closings secured by real estate or other assets and when needed loan workouts and foreclosures. He is Florida Bar Board Certified in Real Estate and is AV rated by Martindale Hubbell.

Since 1975, Brinkley Morgan has provided a proactive and innovative approach to law for its clients. The firm offers a full range of services including corporate and business law, real estate, bankruptcy, family law and commercial litigation, as well as probate, tax, estate planning, administrative law, employment law and immigration law. For more information, please visit BrinkleyMorgan.com.