A look at what agents should think about before applying for a loan
During our interview with Kevin Joyce of the S Bank of Weymouth, Mr. Joyce gave us a great list of things that he often sends to agents interested in obtaining financing. After taking a look at them, we knew this would make a great checklist.
Whether looking for a loan to grow your agency, acquire another agency, invest in technology, hire more producers or employees or to pay off debt, the following is a list that Mr. Joyce recommends that every agent review and be ready to discuss before entering into the loan process.
- Know the percentage of Personal Lines customers that your agency has
- Know the percentage of Commercial Lines customers that your agency has
- Know the percentage of Health and Life customers that your agency has
- Know your current loss rations
- Identify and be familiar with the geographic locations of your current customers and where the heaviest concentrations are
- Have a list of the carriers that your agency currently represents
- Know what your annual contingency income is
- Prepare a list of trade references that you can provide your loan officer
- Have all your agency’s business financials and tax returns in order and ready to be handed over
- Have your own (being the owner of the agency) tax returns and personal financial statements in order
