capitalcan January 21, 2017 No Comments

What Documents Do You Need For a Business Loan?

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.

capitalcan October 7, 2015 1 Comment

5 Most Commom Reasons Why Businesses Fail

Regardless of the business owners’ intentions, all businesses can fail. However, when someone is starting a new business, the last thing needed on one’s mind is failure. It is wrongfully said that most businesses fail during the first year. According to statistics published by the Small Business Administration (SBA), only 30% of new businesses fail during the first two years of being open, 50% fail during the first five years and 66% during the first 10. We will address some of the 5 most common reasons why small businesses and start-ups fail and how they should avoid then in order to improve their chances of success.
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