Gathering Your Documents


What Items Will You Need To Submit For Your Loan Application?

It’s good to know in advance what a lender will need to review in order to analyze your financial advisor business loan. As an SBA lender we review both the business financials and your personal financials. This gives us a global view of how the newly proposed business debt will cash flow. All loan applications will typically require the following:

Personal Financials:

  • Signed Salt Creek loan application
  • Personal financial statement listing personal assets and liabilities.
  • Personal cash flow statement listing household expenses
  • Three years of personal tax returns

Business Financials:

  • Three years of business tax returns (if applicable)
  • Current YTD Profit and Loss Statement and a current Balance Sheet
  • A current business debt schedule that outlines all existing business debt (not personal debt)
  • Year-end practice report from your broker/dealer and/or custodian reporting AUM, GDC, client metrics, etc. (previous three years and the current YTD report)
  • A list of collateral to be pledged for the loan.
  • Any broker/dealer or custodian agreements
  • Lease agreements for office space
  • Two years of monthly cash flow projections (recommended)

If you are seeking a loan to acquire a financial advisory practice the seller will need to provide the following items:

  • Three years of tax returns on the seller’s practice, this could both include Sch C and business returns, depending on how the seller’s practice is structured.
  • 3 years of year-end practice reports from the broker/dealer and/or custodian
  • Current YTD profit and loss statement and a balance sheet
  • Buy-sell agreement and any corresponding agreements (consulting agreements, non-compete, etc.)
  • Copy of seller note (if applicable)

Outside Business Activities

SBA lenders are required to review financials for “affiliated” businesses that borrowers may own or control. While there is are specific definitions of what constitutes an affiliate, it typically comes down to if you own 50% or more of any additional businesses (outside business activities). After reviewing your personal tax returns we can help identify what other businesses that we might need to review.

How Current Do The Year-to-date Documents Need To Be?

While the SBA requires us to have “interim” financials dated within 120 days of your application, at Salt Creek we prefer to have financials dated 60-90 days. Doing so provides us a more up-to-date view of the business and it saves you time. By submitting more recent documents, you can typically avoid having to take the time to provide a second set of updated financials to make sure they are dated within 120 days of submission.

How to Get Started?

We have created a secure document portal where you can easily upload and organize all of your loan documents. It also has a live dynamic checklist to help you track where you are in the process and what documents you still need in order to complete your loan package. While the number of items needed for a loan application may seem daunting, a Salt Creek Loan Advisor will help guide you through the loan process. Contact Salt Creek to learn how our responsive and relationship lending process helps save you time.