People often ask which kind of documentation is required to apply for a small business loan. Although every standard bank has its requirements, many documents are compulsory across lenders. Before making use of them, here will be the basic small business loan requirements – in terms of documentation – to bear in mind.
Finding and trying to get business funding is an activity that requires fortitude, time, and proper business records to complete. There are a number of factors that influence which kind of documentation – and how most of it -you should provide. The amount of the loan is normally roofed by these factors as well as your current economical situation. One of the main factors is the sort of financing you shall be applying for. Make sure you really know what documentation shall be required for the type of loan that you are applying for. Here is the set of documents that are typically asked for to get a Business Loan.
- Copies of agreements with key suppliers and clients;
- Copy of office lease or statement from landlord on terms;
- Current (within 90 days) P/L statements, signed;
- Franchise agreements (if applicable);
- Bank statements from the previous three to twelve months;
- Business financial statements and tax returns up to previous three years;
- Business license and other certificates needed for doing business;
- Business overview and history, including goals, challenges, and use for funds;
- Funding application;
- Ownership structure and any affiliations;
- Personal financial statement and three years of previous tax return
- Personal resume including business experience of each principal.
Loan Application Form: Most of the biggest banking institutions (and underwriters from private lending firms) have committed to technology that allows online small business loan applications. However, too many banking companies still require would-be credit seekers to enter into their branches and complete paper applications to be able to get financing. Applying for lending options at multiple companies can be dangerous because each one can do a hard yank of your business credit record. The greater hard pulls, the less chances you have to getting money because the lenders will interpret it as an indicator of desperation rather than diligent research. Thus, they’ll question your credit worthiness.