Business Finance Preparedness Quiz

1. Which of the following sell business credit reports to banks:(check all that apply)

A. Transunion
B. Equifax
C. Experian
D. Dun & Bradstreet
E. Innovis
F. SBFE
G. Nasdaq Index
H. Manta
I. LexisNexis
J. a, c, and f
K. b, d, and h

2. Select the purpose for which you need a business line of credit

A. Purchase inventory
B. Hire staff
C. Purchase commercial real estate
D. Consolidate current financing
E. Safety net in case it’s needed
F. Marketing and advertising
G. Accounts receivable is slow
H. Purchase equipment
I. To fulfill a specific purchase order contract
J. Business expansion
K. To purchase another business
L. working capital
M. To help find another business

3. Which of the following industries CAN BE high risk or restricted industries, meaning that financing is more difficult to obtain (check all that apply)?

A. Real estate related
B. Wholesaler
C. Franchise
D. Hotel/Motel
E. Transportation
F. Software business
G. Retailer
H. Web-based business
I. Home-based busines
J. Auto dealern
K. Manufacturer
L. Consulting company

4. If you’re applying for a stated income product, where does the bank verify your gross revenues?

A. Bank receives them from the IRS
B. Public records search through LexisNexis
C. Business owner is required to sign an affidavit
D. By checking business credit reports
E. It’s a stated income program so the bank doesn ’t attempt to verify revenues

5. The bank asks you to sign a 4506-T, how do you respond?

A. Sign the form
B. Ask why you are required to sign a 4506-T you’re applying for a stated income loan
C. Refuse to sign the 4506-T


6. Does a business line of credit issued by a bank require a personal guarantee?

Yes
No

7. The business banker or underwriter asks; do you want to use the line of credit to payoff any credit card debt, how do you respond?

Yes
No

8. The business banker tells you that your line of credit has a great feature, an automatic cash advance that’s attached to your checking account so you don’t have to manually transfer money; is this good news or bad news for you?

Good
Bad

9. The business banker tells you that the bank couldn’t approve you directly, but that with SBA backing they can; how do you respond?

A. Sounds good; let’s do it
B. Why can’t the bank approve me without involving the SBA
C. No thanks

10. The business banker asks for your tax returns and YTD financials after you submitted a stated application; what do you do?

A. Tell him you’re no longer interested
B. Give him the documentation he requests
C. Ask him if documentation is required or just preferred
D. Tell him you’re too busy and don’t have time to go full documentation, and ask what the consequences are of simply proceeding without documentation

11. All of the following banks offer stated business lines of credit; which ones will automatically ask for tax returns as soon as the app comes in regardless of how clean the file is? (check all that apply)

A. Washington Mutual
B. US Bank
C. Regions Bank
D. Wachovia
E. Wells Fargo
F. a and d
G. b and e
H. All of the above

12. My business credit scores are a huge factor in my qualification for a bank issued business line of credit:

True
False

13. My business credit profiles are a huge factor in my qualification for a bank issued business line of credit:

True
False

14. The bank analyzes my personal credit scores; which bureau does the bank look at?

A. Transunion
B. Equifax
C. Experian
D. All of the above
E. Depends on the bank

15. The bank analyzes my personal credit, do they look at anything besides the credit scores, and if so, what?

A. Employment and occupation
B. Closed accounts
C. Revolving balances
D. Number of mortgages
E. Inquiries
F. Authorized borrower accounts
G. All of the above listed items plus more
H. Some of the items listed above, but not all of them

16. How many loan products does the average bank offer that might be labeled a “business line of credit”?

A. 1
B. 3
C. 4 - 6

17. Which of the following verification resources might a bank utilize to gauge risk associated with you and your business?

A. Manta
B. LexisNexis
C. SuperPages
D. Secretary of State
E. Small Business Finance Exchange
F. None of the above
G. All of the above

18. If the bank makes an offer for a line of credit approval, is the amount and/or interest rate negotiable?

Yes
No

19. Where to banks look to see if I currently have a UCC filing on my business?

A. Personal Credit Report
B. Business Credit Report
C. Public UCC databases
D. BBB
E. All of the above
F. They don’t care/none of the above
G. B & C
H. I don’t know what a UCC is