Financial Credit Analysis from Business Bank of Texas

May 29, 2013

At Business Bank of Texas we are committed to helping customers understand the financial state of their business as it is seen from a lenders point of view. 60% of all loan applications are denied as reported by a study conducted by Pepperdine University. The study further concluded quality of earning and/or cash flow as the most common reason.*

Our team of experienced loan officers work with our customers to thoroughly evaluate their financial situation. When loans are not approved we show the candidate the areas for improvement so that they can take action and reapply for the loan in the future.

We provide a variety of tools to help business owners prepare for a commercial loan application. Starting with our free Guide to Borrowing ebook and Commercial Borrowing Checklist. These two documents guide applicants through the lending process and give you everything you need to be gathering in preparation for your business loan.

Once a business owner has completed the commercial loan application and provided all the necessary documents listed in the checklist, our team will determine if the application qualifies for underwriting. At the underwriting step in the process we will provide a detailed financial analysis. At Business Bank of Texas we use a sophisticated software tool from Sageworks, which creates a business credit report. The report analyzes five financial variables, which are representative of a company’s financial characteristics.

These variables include:

  • Cash to Assets
  • EBITDA to Assets
  • Debt Service Coverage Ratio
  • Liabilities to Assets
  • Net Income to Assets

From this report we are able to make a decision on the loan application. But we don’t stop with a simple stamp of approval or denial. We meet with our customers to go over the findings of the report. Our goal is to know and understand your business needs and we are committed to a long term banking relationship.

To learn more about the five financial variables and tips for improving these key metrics, you can access the whitepaper Getting Business Credit from Sageworks and also a sample of the Business Credit Report. *The Pepperdine University study is further cited in the Getting Business Credit whitepaper.

Our Business Resource Center also provides an archive of useful articles and tools for borrowing preparation.

See these popular articles:

Understanding Your Company's Debt Service Coverage Ratio

Why Lenders Require Personal Guarantee

Making Cash Flow Easy to Understand

Another tool is our Financial Calculators, which include calculators for:

We are here to assist you throughout the process of obtaining a commercial loan and all your business banking needs. Let us know how we can help.

Topics: The Corner Office, Content Type

Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.
Read more articles from Ed Lette

Guide to Business Borrowing

Learn what banks are looking for when they prepare to make loans. Our guide covers what business owners need to know when they prepare to borrow.


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