Questions Your Banker May Ask

Questions your Small Business Banker may ask you when you apply for a Small Business loan:

Questions about your Small Business’s History:
  • How did you first get involved in this type of business?
  • What kind of issues did you face as you grew over the years?
  • As you built your business, what would you say were your keys to success?

Questions about your Current Objectives:
  • Do you see any changes in your industry? Do you see the changes affecting your business?
  • As you look down the road do you see any changes on the horizon that could affect your industry? What do they look like? Do you see any of these changes potentially affecting your business?
  • As you look at the year ahead, what would you say are your top 2 or 3 business objectives?

Questions about the Future:
  • Where do you see your business in 2 to 3 years down the road?
  • What do you see as your primary business objectives for the next 3 years?

Questions about Business Operations:
  • What products and services does your company offer?
  • Who is your typical customer?
  • How do you market to your customers?
  • Do you have any niches or specialties?
  • How do you acquire new customers?
  • Who are your suppliers?
  • What type of inventory do you have on hand?
  • Who are your main competitors?
  • What advantages do you have over your competitors?
  • What are your biggest challenges as a business owner?
  • Based on your future objectives, what will be the biggest impact on your business operations?

Questions about Financial Operations:
  • What are your typical selling (accounts receivable) terms?
  • What are your typical payment (accounts payable) terms?
  • How do your customers pay you? (for example: check, credit card, cash)
  • How much time do you spend each week managing your cash?
  • Do your cash needs change throughout the year and – if so – how do the changes affect your day-to-day activities?
  • How do you handle shortfalls when your current payables or payroll exceeds your cash in your operating account?
  • How do you handle excess cash?
  • When your cash level reaches a certain level do you tend to invest it for the business or move it into your personal life?
  • How do you finance capital expenditures?
  • Based on your future objectives, what will be the biggest impact on your financial operations or financial needs?
  • Which business or financial needs would you describe as your highest priority?