Loan Application Process
Bank of Ann Arbor's loan application process is quick, the rates are competitive, the loan terms are flexible, and our commercial loan officers are attentive and
friendly. In order to begin the loan application process, you should gather some basic information to present to the lender. This information is called the loan package.
A loan package is the information a lender needs to understand your business and make a fast and informed decision on the products that are right for you. When
developing your loan package, you will need to include a description of your products and services, an overview of key personnel and their backgrounds, a description
of the market in which you operate (competition), and future plans for your company.
Financial information on your business provides the key to understanding how your business has performed in the past and why it may need a loan. The following basic
financial information will be required to evaluate your loan application:
- Balance sheet (statement of assets and liabilities)
- Income statement (income and expenses)
- Other relevant financial data such as accounts receivable agings or equipment lists.
If your business is more than three years old, we will request three years of financial statements and business tax returns; if less than three years old, we will
request all financial statements and tax returns to date.
If you are just starting your business, we will request an opening balance sheet and projections as well as a completed business plan.
By providing complete financial information, you help communicate your financial condition and the results of your operations to a lender. The statements should be
prepared in "generally accepted accounting principals" so they can be easily understood. A Certified Public Accountant or business consultant can assist you in
preparing the necessary information.
In many cases, you will also be asked to provide a personal financial statement
and personal tax returns for
the past two years. This provides the lender with a clear idea of the relationship between your personal and business finances. Upon receipt of all necessary financial
data, a lender will then review your loan and begin the credit process