Your Business Loan Application Checklist
Business Loan Checklist
Applying for a business loan comes with the territory of running a business. Whether you’re just starting out or you want to grow your business, a business loan is one of the easiest ways to finance your plans and fulfill your goals. However, it can be a long, complicated process that requires a lot of patience and hard work.
To make things a little easier for you, here’s your business loan application checklist:
 Loan Application Form
All lenders will require you fill out an application form that will serve as your primary document for your business loan.
Aside from the basic details like your name, address, educational background and criminal records, you should also be prepared to answer questions like “what is the purpose of your loan application?,” “do you have existing loans from other lenders?” and “who are your suppliers?”
 Business Credit Report
A credit report will show lenders that you are managing your finances well and you are capable of repaying the business loan should get an approval.
Make sure that you review your credit report before making an application because it dictates whether you qualify for a loan or not and how much interest rate will the lender give you.
If you have a poor credit history, you can still qualify for a business loan, but with a higher interest rate. So only apply for a loan when you really need the money.
 Business Plan
All lenders will require you to submit a business plan that states all your goals for your business including projected profit and loss, balance sheets, cash flows and financial statements.
It is especially true if you’re a startup applying for a business loan to fund the opening of your business. Make sure to take the time to create your business plan to get a higher chance of approval. If you require a high risk merchant account, be sure to include that in the beginning steps of your business plan.
 Tax Documents
Work with your accountant in putting together your tax returns in the years that you’ve been in business in a way that they reflect how you manage deductions and still keep good revenue stream flowing.
If you’re a startup, however, you can ask your accountant to make a projected tax return for the upcoming year for lenders to use as reference. Be sure your credit card processor is helping you meet these needs.
 Legal Documents
Of course, you’ll need legal documents to back up the legitimacy of your business. Depending on the lender, you may be asked to prepare the following:
- Articles of Incorporation
- Franchise agreements
- Copies of contracts with vendors
- Business licenses and registrations
- Commercial leases
This is why it really matters to keep your records organized at all times, so it’s easier to find the legal documents that you need for a business loan application.
No matter how complicated the process is, applying for a business loan is a way to give your business more financial security.
Just follow this checklist to get your documents ready, find a good lender and of course, be responsible enough to make timely repayments if you get an approval.
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