Tips for a Quick Approval

In general the Application-Only program is for funding requests that are less than $50K. For established companies in California our Application-Only program can be extended up to $100K. The Application-Only program extends to as high as $200K - $300K for many medical professionals, including dentists.

A complete Application-Only request should include:

• Completed one page credit Application – signed & dated
  
• If there are more than two principal owner(s) / officer(s) then we will need a completed Credit Release Authorization to disclose 100% of the ownership unless the company is an Investment Grade entity (publicly traded) or has institutional ownership (Venture Capital, Private Equity, etc.)
• Current business bank statements – 1st page only from the most recent 3 months
• If there is more than one bank account, please include all relevant bank account information
• Equipment information – please provide a quote or invoice from your vendor / supplier
• Although not required a short cover letter explaining the business and the justification for the pending equipment acquisition can be very helpful

In general all funding requests that exceed our Application-Only program limits will require financial disclosure from the prospective borrower / lessee. In order to do our credit underwriting / adjudication we require a standard financial package consisting of two or three years of operating results depending on the dollar amount of the funding request.

For new funding requests in the $50K - $250K a complete credit package should include:

• Completed one page credit Application – signed & dated
• If there are more than two principal owner(s) / officer(s) then we will need a completed Credit Release Authorization to disclose 100% of the ownership unless the company is an Investment Grade entity (publicly traded) or has institutional ownership (Venture Capital, Private Equity, etc.)
• Current business bank statements – 1st page only from the most recent 3 months
  
• If there is more than one bank account, please include all relevant bank account information
• Last 2 years of company financial statements – income statements and balance sheets.
  
• Corresponding corporate tax returns unless financials are reviewed or audited
• Current interim financial statements for YTD 2010 performance
  
• Last 2 years of personal tax returns on principal owner(s)
  
• Current personal financial statement on principal owners (completed within the last 90 days)
  
• Equipment information – please provide a quote or invoice from your vendor / supplier
• Although not required a short cover letter explaining the business and the justification for the pending equipment acquisition can be very helpful
  

For new funding requests that exceed $250K a complete credit package should include:

• Completed one page credit Application – signed & dated
• If there are more than two principal owner(s) / officer(s) then we will need a completed Credit Release Authorization to disclose 100% of the ownership unless the company is an Investment Grade entity (publicly traded) or has institutional ownership (Venture Capital, Private Equity, etc.)
• Current business bank statements – 1st page only from the most recent 3 months
• If there is more than one bank account, please include all relevant bank account information
• Last 3 years of company financial statements – income statements and balance sheets
  
• Corresponding corporate tax returns unless financials are reviewed or audited
  
• Current interim financial statements for YTD 2010 performance
  
• Last 3 years of personal tax returns on principal owner(s)
  
• Current personal financial statement on principal owners (completed within the last 90 days)
  
• Equipment information – please provide a quote or invoice from your vendor / supplier
  
• Although not required a short cover letter explaining the business and the justification for the pending equipment acquisition can be very helpful

Coming soon...

The application process for Municipalities is the same regardless of the dollar amount of the request.

A complete Municipal credit package should include:

• Completed one page credit Application – signed & dated
• Current business bank statements – 1st page only from the most recent 3 months
• If there is more than one bank account, please include all relevant bank account information
• Current Fiscal Year Budget
  
• Last 2 - 3 years of audited financial results (the complete audit report with all notes / schedules)
• 2 years of audited financial results if the request is under $250K
  
• 3 years of audited financial results if the request is over $250K
• Equipment information – please provide a quote or invoice from your vendor / supplier
• A copy of the equipment RFP or bid specifications
• Although not required a short cover letter explaining the business and the justification for the pending equipment acquisition can sometimes be very helpful.

In general obtaining financing for a new start up business is much more difficult than what an established company will experience. A company that has been established for less than two years is considered a start up by the commercial lending industry. Although First Star Capital does have a funding program available for start ups the maximum amount we can lend is capped at $30K. Since the commercial credit tends to be limited with a new company we require stronger than average personal credit for the owner(s) / guarantor(s).

A complete start up funding request should include:

• Completed one page credit Application – signed and dated.
• If there are more than two principal owner(s) / officer(s) then we will need a completed Credit Release Authorization to disclose 100% of the ownership unless the company is an Investment Grade entity (publicly traded) or has institutional ownership (Venture Capital, Private Equity, etc.)
• Current business bank statements – 1st page only from the most recent 3 months
• If there is more than one bank account, please include all relevant bank account information
• Equipment information – please provide a quote or invoice from your vendor / supplier
  
• Although not required a short cover letter explaining the business and the justification for the pending equipment acquisition can sometimes be very helpful.
  
• Complete “Start Up Documents”
1. New business questionnaire
2. Sources and uses document (similar to an opening balance sheet)
3. Projection worksheet
4. Resume / background / bios on the principal(s) / guarantor(s)
5. Used condition reports: Vehicle / Equipment

** Often times a well done business plan will include all of this information – we are happy to accept a copy of the business plan in lieu of these forms if they are redundant.