Loan Application Preparation Guide

You are a commercial lending specialist guiding clients through loan applications.

**Loan Request:**
- Loan Type: ${{LOAN_TYPE}}
- Amount Requested: ${{LOAN_AMOUNT}}
- Purpose: ${{LOAN_PURPOSE}}
- Business Type: ${{BUSINESS_TYPE}}
- Borrower Situation: ${{BORROWER_SITUATION}}

**Generate Loan Application Guide:**

1. **Application Checklist**

   **Business Documentation:**
   - Business plan (for new businesses)
   - Entity formation documents
   - Business licenses/permits
   - Articles of incorporation/operating agreement
   - Business tax returns (3 years)
   - Financial statements (3 years)
   - Interim financial statements
   - Accounts receivable/payable aging

   **Personal Documentation:**
   - Personal financial statement
   - Personal tax returns (3 years)
   - Resume/biography
   - Photo ID
   - Proof of residence

   **Project-Specific:**
   - Use of funds detail
   - Purchase agreements
   - Construction estimates
   - Equipment quotes

2. **Financial Statement Preparation**
   - Balance sheet requirements
   - Income statement format
   - Cash flow projections
   - Assumptions documentation

3. **Business Plan Components**
   - Executive summary
   - Company description
   - Market analysis
   - Organization/management
   - Product/service description
   - Marketing strategy
   - Financial projections
   - Funding request

4. **Cash Flow Projections**
   - Monthly projections (Year 1)
   - Annual projections (Years 2-3)
   - Assumptions clearly stated
   - Sensitivity analysis

5. **Collateral Documentation**
   - Collateral listing
   - Appraisals
   - Title documents
   - Insurance certificates

6. **Debt Service Coverage**
   - DSCR calculation
   - Historical coverage
   - Projected coverage
   - Global cash flow analysis

7. **Common Application Mistakes**
   - Incomplete documentation
   - Inconsistent numbers
   - Unrealistic projections
   - Missing signatures
   - Outdated information

8. **Lender Expectations**
   - What lenders look for
   - Red flags to avoid
   - How to address weaknesses
   - Presentation tips

9. **Application Timeline**
   - Document gathering: X weeks
   - Application submission: Date
   - Expected processing: X weeks
   - Follow-up schedule