How to Prepare a Loan Package For a Bank Or Lender

A loan package is typically used for real estatekey aspects and facts of the overall loan package.
development projects and acquisitions, but there areFor this reason, the summary should be developed
parts of the package which are applicable to theafter the loan package is completed.
other types of business and commercial loans andBelow you will find a suggested format for the loan
finance. If you are seeking a loan or funding from asummary and package. Amend them to suit your
commercial or business lender or funding from aparticular project and funding request.
venture capital firm or investor, it is important toSuggested Loan Summary Format - company
present a well organized, detailed loan package. Theinformation, project description, company and project
package gives the loan officer, investor or ventureprincipals experience summary, sources and uses of
capitalist the necessary information to gauge thefunds, requested loan terms, summary of assets and
viability of your loan or finance request, and in turn,collateral, project financial summary, current company
providing you a loan term sheet and commitment. Alland project financial summary
lenders and funding sources have differentSuggested Loan Package Format - table of contents;
requirements, so customize your finance package toloan summary; company and project information,
their parameters.contact details and history; principals backgrounds,
Loan packages can be voluminous and paperexperience and resumes; key project employees,
intensive so it is important that it is well organizedexecutives and managers experience and
with a detailed table of contents and alphabetical tabsresponsibilities; company and project organizational
indicating different sections. This way the loan officerchart; company registration; project description;
can easily find the necessary information in theproject pictures and renderings; key roles and
package when analyzing and assessing your loanrelationships - company, strategic partners, third
qualification and the resulting terms.parties and government; sources and uses of funds;
The loan package should be bound in paper form,company and project collateral, assets, liens and
scanned to a disk and available for online download. Ifloans; schedule of real estate; rent roll; company and
you are mailing to the Loan Officer a paper copy beprincipals credit standing and credit reports; principals
sure to include the package on a disk as well. Thisand company financial statements; company balance
way the lender can print out different sections forsheet; project budget; company and project cash
various loan committee members and decisionflow statements; pre-sale commitments; project
makers. The disk should be well organized, with eachappraisals and valuations; project studies, feasibility
section of the loan package as a separate, labeledstudies, business plan, consulting studies and
folder, all presented in the order indicated in the tableengineering studies; project proposals and contracts,
of contents, which should be the first folder on thelease agreements and escrow agreements; title
disk.policies; annual reports; tax returns - personal and
Preceding the loan package document is a loanbusiness; project strategic plan and time line; project
summary, two to three pages in length, whichconstruction plans, specifications, drawings, surveys
summarizes the important parts of your loan orand maps; project construction cost breakdown;
finance request. The loan summary is the first sectionconstruction cash and finance disbursement schedule;
in the loan package and can also be used as aproject construction cash flow statement; project
standalone document to generate and gauge interestand company advisors, consultants, contractors,
in your project. If used as a standalone, it should beconstruction team, legal firms, accounting firms and
accompanied by an executive summary. The loanengineering firms; appendix
summary is to a loan package what an executiveGood luck with your funding initiative!
summary is to a business plan, a summary of the