Credit Lenders Need To See These Things Before Approving a Loan
Whether you’re an existing corporation looking to expand or an entrepreneur working with the Small Business Administration (SBA)
to start something brand new, the business loan process involves paperwork. Lenders need to review specific documents to assess risk and before approving any organization for a loan. Gathering the following documents ahead of time will prepare you for the loan application process and save time in the long run.
* when applying for a revolving line of credit
- Three years of financial statements, from the business of an existing entity or the principals of a new venture
- Tax returns
- Personal financial statements from each guarantor
- Entity documents, business documents that show the company structure, etc.
- An idea about what you’ll use as collateral, how much it’s worth and a proof of value
- Accounts payable and receivable documents from the business*