on 3/6 and we don't have our personal and biz tax returns done nor will we by that date...what happens? can we ask for a 3-6 month extension with our lender? or will they ask us for the money right then and there?
They will probably just take your last 2 years of returns (biz and personal) and then ask for YTD financials for the business. That should be enough to satisfy their underwriters' needs.
They already have our 4th qtr year end stuff and are still insisting on partners' 2010 returns and biz 2010 return. We won't have all the ppaperwork to even start completing the returns by 3-6 (mat date). What will bank do-usually? Are there things such as extensions?
Yes- you can always ask for an extension. Of course, it'll be up to them if they want to give it to you or not. I find it strange that they're demanding your 2010 returns since you're not even required to have the complete yet. Most small businesses are just getting around to wrapping up their year-end books by this time of the year. Do you have an accounting firm working on your biz returns already? Perhaps you can get them to speed up the process a bit?
could the bank just close our line since we wont have what they need by the maturity date? therefore requiring us to pay our line off? we're assuming that's the route we're headed.
Yes, if you don't provide them with the underwriting info. they ask for at renewal, they could close your line and demand payment. That usually won't happen as long as you keep the communication open and are making your payments. Most of the time they'll offer an extension to get things all figured out if you ask for one.
If we don't have the tax returns in by first week of March, will the file just be suspended or will they have to close it and start new one since it will be beyond our maturity date?
One more thing.....what is the average extension time a lender like Wells Fargo. Could we ask for 6 months?
In the past, I've received 3-month extensions on business LOC renewals. I'm not sure how WF will respond though. Every bank is different. I would ask for a 3-month extension and tell them that you'll have all the returns complete by 4/1.
well, here's the latest update...despite being asked for the 2010 tax returns (both personal and biz), our bank rep gave the file to the underwriter and that's where it is now......we didn't even get to stress that we wanted an extension! we're very annoyed now...they're using our 4th qtr financials but we wanted time to stretch a bit......will they at least be pulling up a current credit report on the biz rather than using the one that was first pulled in January or early Feb? we did pay down some credit card bills (some completely paid off and want them to see that). we should have an answer tomorrow, so says the bank rep.....is the renewal process easier than a brand new loan?
Yes- renewals are definitely much easier and faster. You can always just tell them what debt you've paid down. They'll take that into consideration, but my guess is they won't pull credit reports again if it's been less than 30 days.
going nuts here....no word from the bank yet and it's almost 4pm...really hoping to hear we've been approved by tomorrow so no worries on the weekend. good to hear renewals are easier...what makes them easier and faster? still annoyed the banker just sent the info into the underwriter without us even getting to meet face to face with him or ask for that extension we wanted!
