Venture Financing:

Dealing with Banks

Documentation Required to Process a Commercial Loan

How To Obtain a Commercial Loan for Your Venture


By Venture Planning Associates. Used by permission


The following information check list is designed to make you aware of all the issues that a bank, private lender or government lender will investigate and evaluate in the process of reviewing your loan application.  While there are many references to real estate in this checklist, understand that banks are asset-based lenders and will require collateral (usually real estate) as a secondary source of repayment. It will help your application a great deal if you have this information pre-packaged, in a three ring binder with appropriate table of contents and tabs set-up for ease of use by the loan officer.

  • Letter requesting funding and stating exactly all the requirements, time frames, payback methods and collateral for the project.

  • Completed Commercial Application for each principal.

  • Three years tax returns for all principals with schedules.

  • Current financial statements for the principals (Signed).

  • Brief resume of the Borrowing Entity, Development Company, Management Company, and each Principal.

  • Authorization to release Credit Information.

  • Two banking references for the Borrowing Entity.

  • Letter stating Use of Funds (if a refinance).

  • Copy of Warranty Deed to the Property.

  • Copy of Tax Receipts on Property.

  • Copy of Purchase and Sale Contract.

  • Copy of Previous Title Policy.

  • Current Annual Property Operating Data Form.

  • Cash Flow Analysis including Pro-Forma Income & Expense Statements.

  • Current Balance Sheet & Profit & Loss Statement on Borrowing Entity.

  • Copy of Articles of Incorporation & Borrowing Resolution.

  • Copy of Joint Venture or Partnership Agreement.

  • Brief History of Business & Each Principal.

  • Verification of Balances of Existing Liens on Property.

  • Interim Statement and Two Years Operating Statements on Property (signed).

  • Two Years Corporate or Partnership Tax Returns with Schedules

  • Copies of all Leases and Rental Agreements

  • Color Photographs of Property.

  • Sample Lease Agreement.

  • Sample Sales Contracts.

  • Current Rent Roll (signed).

  • Demographics Study Report.

  • Business or Property Appraisal (signed and dated within 6 months)

  • Copy of Property Survey.

  • Zoning Letter.

  • Marketing Plan.

  • Aerial Photograph of Property.

  • Availability of Utilities, and Water Letters.

  • Drawing of Floor Plans or Renderings.

  • Cost Breakdown of Land Costs and Development Costs.

  • Complete Description of Property and Project.

  • Executive Summary of Project.

  • Signed Agreement for Financial Services.

  • Contracts with Joint Venture Partners/Architects/Contractors/Operators.

  • Copies of Patents, Trademarks, Copyrights, Service marks, etc..

  • Any additional contracts, vendor agreements, joint marketing agreements, government contracts, etc. that can verify future cash flow.

NOTE:  Use the above as a checklist.  Remember, not all the above will apply to every project