- August 17, 2015 at 12:58 pm #14775
I need to apply for small business loans. So plz let me know the checklist before applying for a loan?August 18, 2015 at 5:25 am #14800
If you are starting a new business, you need to have the following things to qualify for small business loans:
1.Availability of credit report: Before applying to a lender, you must have your personal credit report with accurate information. Any mistakes on a credit report can hinder your chances of loan approval. If you already have a business, you will have to submit both your personal credit report and business credit report.
2.Income Tax Returns: You must keep your business and individual income tax forms for the past 3 years before you submit your application for a loan.
3.Good Business Plan: If you want to get a loan from a private financial specialist or government-supported offices to set up your business, you ought to have a strong business plan that can be submitted. Such an arrangement ought to incorporate a whole arrangement of expected monetary proclamations, including income, P&L (benefit and misfortune) articulations, and an accounting report.
4.Financial Statements: Proprietors having more than 20% stake in your business are obliged to present personal financial statements by a few advance projects. You might likewise be requested to present financial statements as a separate form or as part of the business plan. So you must have financial statements.
5.Legal Documents: In view of your small business credit prerequisites, your loan specialist may request you to present one or more authoritative archive, if pertinent. Some basic things that you ought to keep prepared in such cases include:
1. Articles of Incorporation
2. Business registrations
3. Franchise agreements
4. Copies of contracts between third parties and you
5. Commercial leases
For more information you can refer to the following link: http://caps.fool.com/Blogs/what-do-you-need-to-qualify/1063803.August 18, 2015 at 3:26 pm #14812
Blair has provided a good checklist. However, the paperwork that you’ll need depends a lot on what type of business loan(s) you’re applying for. If you are considering a bank loan, all the paperwork mentioned above is necessary. However, if you’re applying for an alternative loan, far less paperwork may be needed.
We have a good summary of small business loan options so you can narrow down which types are most suitable for your business.
Once you do that, we have individual lender reviews that show what paperwork is needed for each loan product.
Keep in mind that most loans require personal guarantees from anyone who owns 20 % or more of a business, so make sure your business partners and primary investors are included in loan discussions.