to Self-employed: share business info get a loan?

Discussion in 'Business Operations' started by lawncuttinfoo, Oct 14, 2009.

  1. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    Why, don't you have the previous 5-8 years' tax returns?

    Anything less than that I can imagine they might get a little funny
    and it might seem out of line asking for your customer list but think
    how you would feel if some Joe came up to you asking for money LOL
     
  2. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    When I went for a business loan, I had to submit so much paperwork and information you would have thought I was buying the empire state building.

    Copies of contracts, full financial statements, bank statements, asset valuations, resumes of key employees, sales reports and on and on.
     
  3. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    Unless they're asking for SS numbers, why the hell would you or your customers care?
     
  4. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,096

    Just curious... What bank are you dealing with?
     
  5. mommacutz

    mommacutz LawnSite Member
    Posts: 120

    Is this a loan for the business or a personal loan such as for a home or auto?
     
  6. ted putnam

    ted putnam LawnSite Platinum Member
    Posts: 4,539

    I wouldn't want my personal info "shared". I get enough BS telemarketing calls and "File 13" crap in the mail and a lot of it is because I've had to enter info to order something on the net and they have shared my info....pisses me off!
     
  7. willretire@40

    willretire@40 LawnSite Bronze Member
    from VA
    Posts: 1,387

    If you write yourself a paycheck every week and take out taxes you wouldnt even have to tell them that you are self employed. You would just say I work for AZ Lawn Care and show them pay stubs. That is if it is a personal loan.
     
  8. JRSlawn

    JRSlawn LawnSite Senior Member
    Posts: 636

    How much money are you trying to barrow?
     
  9. Mrs. H

    Mrs. H LawnSite Senior Member
    Posts: 708

    If the loan is for business purposes it may be in the bank's interest to know how many customers you have now and how many you have in the future.

    It would probably make more sense to go online and find a template for an existing small business plan. Your business plan should cover all your percentages and demographics, future growth ect. without having to disclose specific customer info. It's a lot of work, but certainly would show you have a more professional approach and are serious about expanding your business.
     
  10. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    Bank has to verify employment. they can this with tax records and such. if you are new business and you don't have previous tax records, then you may have to show more information. If you are a company that does not use contracts for your services, then you may have to divulge a customer list such that the bank can verify your claims of income. If you have signed contracts then providing them with copies of he contracts with the first/last name blacked out might suffice. if they s till insist on a a full list, then I'd ask them to sign a form that state they will not use this list for the purposes of soliciting new customers, only for loan verification.

    Look at it from the banks shoes...they have to be able to verify that you are able to pay back the loan...with no tax records, the next best hing is a customer database. with records of recent recurring deposits...
     

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