University of Phoenix
May 22, 2012
Learning Team Reflection Week One
In this paper, the members of Team B are acting as loan officers. In the scenario the members of Team B are presented with a loan package from a start-up company and a loan from a well-established company. Team B will consider what specific components we will require in the start-up company’s loan package to approve the requested loan? How do your lending requirements for the start-up company differ from those for the established company applying for a loan?
A loan package is the collection of documents associated with a specific loan application. For example, if a person wants to buy a house the loan package requirements can include the application, the home appraisal, the credit evaluation, and others. As a loan officer, we will complete a credit history evaluation for each individual on the loan. Another document that can be requested may include a copy of the first’s year budget, and a copy of their sales forecasts for the first year. In addition, a letter from their attorney or CPA confirming the information that the new company is real, and in decent standing with the federal and state tax agencies. Finally, a list of former banks where the business has already opened accounts, had loans or other financing options that have not yet been reported to credit agencies. The lending requirements are going to be different when an establish company asks for a loan. For example, an established company already has a credit history and an established name especially if they already had loans with our business. In conclusion, a loan package is a very important tool when you want to create a new business. The amount of money that you will get to start running the business is going to depend of how well you prepared the loan package.