Documents to Gather Before Applying for a Business Loan

Waiting for a loan approval can feel like an eternity. The good news is that there are things you can do to expedite the process. Preparing all the documents you will need is one way to move the process along. Here are some documents to collect for your application:

• Business profile. This document describes your business, including annual sales, number of employees, length of time in business, and ownership.
• Business plan. A business plan is particularly important for new businesses, as they lack a track record for lenders to go by. Your plan should convey all important facts about your business in a concise manner. Your business plan may range anywhere from 5 to 20 pages, plus financial projections. Learn to Write a Winning Business Plan.
• Loan request. This should detail the amount of money requested, how the loan funds will be used, the type of loan, and the amount of working capital you have on hand.
• Collateral. Describe what will be used to secure the loan, including equity in the business, borrowed funds, and available cash. Review the information in Should You Personally Guarantee a Loan to Your Small Business?
• Personal and business financial statements. You will likely need to provide financial information for anyone who owns 20 percent or more of the business, including owners, partners, officers, and stockholders. Lenders will want to see a complete schedule of current debts with balances, payment schedules, maturity, and collateral used to secure other loans.