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What documents bank collect from borrowers for commercial loan monitoring?



Banks typically collect a variety of documents from borrowers for the purpose of monitoring commercial loans, including:


1. Financial Statements: Banks will typically require borrowers to provide regular financial statements, such as income statements, balance sheets, and cash flow statements, in order to monitor the financial performance of the borrower's business. 2. Tax Returns: Banks will typically require borrowers to provide regular tax returns, in order to verify the financial information provided in the financial statements. 3. Compliance documents: Banks may require borrowers to provide documents demonstrating compliance with the terms and conditions of the loan, such as insurance policies and lease agreements. 4. Collateral documentation: Banks may require borrowers to provide updated documentation related to any collateral pledged as security for the loan, such as deeds and titles. 5. Audited Financial Statements: Banks may require borrowers to provide audited financial statements for the purpose of loan monitoring. 6. Annual reports and other reports: Banks may require borrowers to provide annual reports, business plans, and other reports to monitor the business performance and future plans of the borrowers. 7. Other relevant documents: Banks may require additional documents depending on the type of loan, such as environmental reports, licenses, and permits.


These are some of the common documents that banks collect for commercial loan monitoring, but it's always best to check with the bank for their specific requirements. Banks use these documents to track the performance of the borrower's business and to ensure that the loan is being used in accordance with the terms and conditions of the loan agreement.


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