Features of a Good Loan Application

A good loan application should contain some or all of the following:

1. Introduction and Loan Amount

• Background of all borrowers, mortgagors and guarantors;
• Purpose of Loan; and
• Funds requested.

2. Assets and Liabilities

• Legal structure of borrowers, mortgagors and guarantors; and
• List of assets and liabilities at a realistic valuation for all borrowers, mortgagors and guarantors.

3. Business Plan

• Industry conditions and comments;
• Land use - eg crop, stock numbers, tenants etc;
• Financial Plan - how do you propose to pay your interest and to repay the loan at the end of the term; and
• Financial performance of all borrowers, mortgagors and guarantors.

4. Security Offered

• A description of all security offered;
• The registered owner of each security;
• Location of each security offered and nearest major town;
• Estimate of value of each security at a realistic valuation; and
• Insurer of all buildings located on the security and the insured amount.

5. Special Features

• Provide details of any unique information relating to the security offered or the borrowers, mortgagors and guarantors.

The majority of this information is found on the standard Stacks Finance Application Form which will need to be completed in full before the loan can be considered.

A copy of the current Application Form can be downloaded here.