Principals Tab

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The Principals tab appears for business applications. Your financial institution determines whether this tab is required, optional, or not applicable on a product by product basis.

Generating a Principal/Guarantor Form

To generate a principal/guarantor form, you first need to click the newicon.gif icon. Clicking the icon again generates a second form, and so on, for as many forms as you need.

Here are notes about some of the fields in this section:

Additional information about principals in Bank2Business:

About Joint Principals

For small business applications, you are allowed to create joint principals for situations in which the principals in a business have shared accounts.

Note: This feature does not pull a joint credit report. A separate credit report is still retrieved for each of the top two principals.

Here are the basic steps for using this section:

  1. Fill out the Principals/Guarantors form for the primary joint principal (the principal with the higher percentage of ownership, if the percentages are different). Note the following:

    • Use total amounts for the financial statement fields in the form. In other words, treat the financial statement fields as a single, joint statement for both principals.

    • Make sure that the yes/no option for joint personal financial statements is marked as no for the primary principal.

  2. Create a second form for the secondary joint principal. For this principal, select the yes option for joint personal financial statements. Note that when the yes option is selected, the following fields in that secondary principal’s form are no longer editable:

    • Total Assets

    • Total Liabilities

    • Equity in Home

    • Value in Business

    • Revolving Credit Payments

    • Mortgage/Rent Payments

    • Other Loan/Note Payments

  3. In the Principal Summary section of the decision page, fields related to financial statements will be blank for the secondary principal. The underwriter should refer to the primary principal’s Principal Summary, where these fields apply to both of the joint principals.

 

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