The Items Required for a Small Business Loan
A lot of time can be wasted if you aren’t fully prepared when you apply for a small business loan. The process itself can take long enough, even when everything is in perfect order, so you certainly don’t want to extend the process through any shortcoming of your own. By consulting the checklist below, you should have everything ready for the reviewer, so that the only holdups will be on their side and not yours.
Small business loan application checklist
1. Determine the amount
Decide exactly how much money you will need to cover whatever expense is driving the loan.
2. Spending plan
Have a plan in place for exactly how you’re going to use the money, and be ready to explain this to any lender you apply with.
3. Credit history
Know your credit history, and if you have time before you apply, try to resolve any line items on that history which could be taken in a negative light. There are companies which can help you remove unjustified negative lines.
4. What kind of loan?
Choose which lender you will apply with, and what type of loan product will best fit the needs of your company, e.g. lump sum, line of credit, etc.
5. Prepare your documentation
Whoever you apply with, they’ll want to see the following documentation: personal and business income tax returns for 3 yrs, personal and business bank statements for 6 months, payroll records for 6 months, business licenses, Proof of business type, titles and leases, proof of Accounts Receivable, proof of any intellectual property.
6. Business history
Be prepared to describe and substantiate the history of your business thus far, especially in the past 2 years.
7. Financial statement
Have a prepared financial statement which is conservative on future projections, but emphasizes your reliability as a borrower.
8. Business plan
Bring your business plan to the meeting so you can show the lender what kind of impact the loan will have on your business. This plan should make it clear why your company is such a great investment for the lender.
For more information on applying for a small business loan, contact Anmarc Business Capital today.