Business Growth > Entrepreneurship > Financing
Be prepared to write a Business Plan. This is a narrative that explains how the company is going to progress in the future. The plan should include an executive summary, mission statement, company description, market analysis, competition, key personnel, and proforma statements for three years. For more information, see the Business Plan section.

Funding Finder
Sponsored by Key Bank, the Chamber offers a tool to help new business owners find the right organization for their funding needs. Whether you are just starting up, need a new piece of equipment or are embarking upon international trade, start with the Funding Finder for access to a host of funding sources targeted specifically to your needs.

Before meeting with a financial planner or banking institution, prepare all of the company's Tax and Financial Information. This includes:

  • Tax Returns for the last three years.
  • Financial Statements for the last three years.
  • Personal financial statement of all owners with 20% or more ownership in the company.
  • Personal tax returns for the last two years.
  • Business and personal references.
  • Personal resume
  • Current aging of accounts receivable and payable.

Gather additional tax and financing information.
Companies seeking financing from a traditional bank or savings and loan will need:

  • Detail of loan request, including description of business.
  • Previous three years financial statement.
  • Previous three years business tax return.
  • Previous three years personal tax return.
  • Interim financial statement within 60 days of application.
  • Personal financial statement within 60 days of application (for all principals).
  • Accounts receivable aging.
  • Accounts payable aging.
  • Articles of incorporation or organization.
  • Schedule of equipment

Financing requirements for special situations.
If the business is a brand new start-up, banks will typically require two years of financial projections with the first year broken down month to month. If the loan involves the purchase of real estate, the bank will require a purchase contract detailing the transaction. If the loan is for a franchise, a copy of the franchise agreement is required.

Plan for collateral.
The business loan will require some sort of collateral to support it and a bank's typical advance rates are as follows:

  • Accounts Receivable 80% of receivable less than 90 days old.
  • Inventory 50% (however work in process is excluded)
  • Equipment 50% of Book Value
  • Real Estate 80% of appraised value less superior mortgages

Visit the Access to Capital page or click here and type in the subject line Guide to Raising Capital to receive a free brochure. Visit the Chamber Membership Directory for Banks and Venture Capital companies.