|
 |
Home >> Lending >> Business Credit
Am I Required to Provide New Financials?
I have a business loan in which I put up a business and real estate as collateral. I have had the loan about four years, but after three years I refinanced for a better rate. The original bank had been purchased by a new bank and the new bank gave me the new, better rate. I have never been late with a payment since getting the loan. Now my banker wants updated financials. On principle, I don't feel I should have to provide new financials. There is no reason I can see for this. I don't care to have my bank "looking over my shoulder." Am I required to provide these?
|
|
 Your loan documents may include covenants that require certain things, including proof of insurance, tax receipts, financial statements and tax returns. If these do not exist, then no, there is no requirement for it.
However, if you go to the bank and want to borrow more money, they'll need these. If they have them already and have analyzed them, they are in a much better position to offer you those funds and to react much faster to your request. It allows the bank to understand your business and financial condition. If you already have these statements prepared, there is no reason not to meet your lenders request.
If your financials are not looking as strong as you think they should, the bank can't call your loan unless, again, they have included financial covenants in your agreement. If there are required benchmarks, there must be a requirement to provide the financials by which they are measured.
Published on BankingQuestions.com 11/24/10
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
