There are several sources that grant credit to small businesses, in addition to the Small Business Administration.
Requesting a business loan requires several documents that you must have on hand. Are you a small business owner and want to apply for a loan? This article will help you prepare and have all the documentation you may require.
There are many loan programs such as merchant cash advance. These loan programs advertise their services and get MCA Leads to their services. Each loan program requires the employer a series of specific documents that need to be submitted with the application.
In most cases you are asked for the same information, even if the loans are different. This article gathers all the basic documentation that you have to have on hand if you want to apply for a loan.
Documentation to request a loan for your business:
- Personal background: It is more than likely that if you apply for a loan, you are required to present some personal information corresponding to previous addresses, criminal records, educational records, etc.
- Summarize:Also, the most logical thing before granting a loan is that you are interested in your experience as a business manager. You will be asked to attach your Resume together with the loan application. This usually happens when the loans are granted to entrepreneurs who are going to start a new business.
- Business plan:Absolutely all the programs you apply to apply for a loan will require a business / marketing plan that must be included with the application. Primarily, you will have to indicate the approximate costs of each action and make a prediction of the expected financial results.
- Business credit report:It is important, if your business is already underway, to review your business’s credit report before beginning the application process. Likewise, you should also have your personal credit report prepared.
- Tax return:Many of the loan programs require applicants to file their personal and business tax returns for the last three years.
- Financial statements:Most loan programs require owners with more than 20% percent of shares in the business to submit personal financial statements.
With this they want to know if you really need that money to finance your small business, or if on the contrary, you do not need the loan because you already have enough credit. This is the same when applying for a scholarship. The institution or organization responsible for the delivery of scholarships requires knowing the financial status of the parents to know if the students really have the necessary support or not.
- Bank statements:Many loan programs require one year of personal and commercial bank statements which are created by Payroll & HR Software that must be presented as part of a loan package.
- Personal credit report:If you are going to apply for a loan, along with the application form, you should also submit a personal credit report as part of the process.
A tip, before requesting anything, it is important that you try to clarify and / or solve any negative point of your credit history with the main credit rating agencies before beginning the application process. Any error in your report could affect your chances of getting approval for a loan.
- Legal documents:Make sure you have these documents, the lender could request them: – Licenses and records necessary to operate the business – Copies of the contracts you have with third parties – Franchise agreements – Commercial leases