In
order to apply for a loan you have to provide
certain documents that all lenders will ask for.
These documents are required for lenders to
gauge your financial health and determine
whether or not you're a good risk.
Be prepared to provide these documents to your
lender. |
|
Business Plan:
A business plan is a requirement for any
small business bank loan. The business plan will
include an executive summary, busienss
description, local market & competitive
landscape, product or service, the management
team, profit & loss statements, projected
financials, cash flow, etc.
Learn more about
writing the business plans.
|
|
Bank Statements:
Be prepared to submit up to a year’s bank
statement.
This includes personal as well as
business bank statements.
|
|
Personal background Check:
Be prepared to submit a personal
background check which includes educational
background, criminal background check, etc.
|
|
Personal Financial statements:
Many
banks reuiqre that owners with more than a 20%
stake in the business to submit financial
statements.
|
|
Ownership and affiliations:
Members on the management team will have
to show what they own and affiliations they have
with other organizations.
|
|
Loan application history:
If you have a history of applying for
loans in the past banksers want to know this.
They want to know if you’re seeking
additional financing or if you’re a risk that
other banks are not willing to take.
|
|
Legal Documents:
Articles of Incorporation, Business license,
Contracts, Leases, etc. are all legal documents
that must be provided to bankers for small
business loans.
|
|
Income tax returns:
Be prepared to submit personal and
business income tax returns for 3-5 years.
|
|
Resumes:
Bankers use Resumes to learn whether or
not you have the management or business
experience to make the business successful.
|
|
Collateral Documentation (Proof of ownership):
Prepare documents that shows ownership
and value of any item that will be used as
collateral to secure the loan.
|
|
|