(b) Any contract or proposed contract between the company and any member of management and/or
outside consultants. Also include the name(s) of your accountant and/or attorney.
Marketing and Distribution
A narrative discussion of the following:
(a) The type, number, location and financial strength of customers and potential customers (including the
names of the five largest) indicating the percentage of the gross revenue accounted for by these
customers.
(b) A marketing survey and/or economic feasibility study of a scope commensurate with the size of the
company and the proposed investment.
(c) A brief description of the actual or proposed terms of payment by customers if other than cash,
including the method of financing utilized.
(d) The methods by which the products or services are now (or will be) provided to customers, including
the adequacy of physical distribution facilities (i.e., warehousing, delivery equipment, etc.).
(e) A description of the techniques presently utilized (or to be utilized) to create the demand for the
products or services.
(f) Any significant seasonal aspects pertaining to the marketing of the products or services.
Competition
A descriptive summary of the competitive conditions in the industry in which the concern is engaged along with the
relationship of the applicant to its largest and smallest competitors.
Facilities
(a) A detailed description of the real and physical property and equipment, including age, condition,
insurance coverage, and adaptability to the principal business in which engaged.
(b) Copies of agreements pertaining to any encumbrances on property or equipment owned, or lease or
rental agreements on non-owned property.
(c) The same information for property proposed to be utilized by new ventures.
(d) Copies of any franchise agreement, distributorship, dealership, royalty contract, or similar contract
with other companies.
References
(a) List a minimum of one banking, one business, and three personal references for each member of
management and each principal owner. List the company's key advisors: CPA, attorney, etc.
(b) Credit report on principals and company.
(c) Discuss the company's reputation with suppliers and customers; a small sampling should be taken.
Ask the suppliers/customers about the company's reliability, credit-worthiness, fair business practices,
etc.
Financial Information - Financial Statements
(a) Historical -- When available on established companies, balance sheets and profit and loss statements
(preferably prepared by an independent public accountant) for a minimum of the last three fiscal
years or from inception, including the latest interim period. Include a comparison with industry
averages from RMA (The Risk Management Association). Latest aging of accounts receivable and
accounts payable.
(b) Proforma
-- A proforma balance sheet which includes the effect of the financing, supplemented in the
case of new ventures, with a description of the source of the original funds and assets.
(c) Cash Flow -- A detailed projection by month of anticipated revenues and expenses and a schedule of
cash receipts and disbursements for a minimum of twelve months subsequent to the proposed
financing. Proforma profit and loss statements for the next three years.
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