14 Questions A Business Lender Typically Will Ask

If you are in need of a business loan, you should expect your lender to ask a variety of questions related to your ability to repay the loan.

The U.S. Small Business Administration suggests anticipating the following questions:

1) Can the business repay the loan? (Is cash flow greater than debt service?)

2) Can you repay the loan if the business fails? (Is collateral sufficient to repay the loan?)

3) Does the business collect its bills?

4) Does the business pay its bills?

5) Does the business control its inventory?

6) Does the business control expenses?

7) Are the officers committed to the business?

8) Does the business have a profitable operating history?

9) Does the business match its sources and uses of funds?

10) Are sales growing?

11) Are profits increasing as a percentage of sales?

12) Is there any discretionary cash flow?

13) What is the future of the industry?

14) Who is your competition and what are their strengths and weaknesses?

For additional information about commercial loans, visit any of Victory State Bank’s five branches in Staten Island, N.Y.

About Victory State Bank:

VSB Bancorp, Inc. (NASDAQ: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online http://www.victorystatebank.com .

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