There are typically several documents that lenders will require when you apply for a business loan. These documents may vary depending on the lender and the specific loan product, but common documents that may be required include:
- Business plan: This document outlines your company’s goals and objectives, as well as how you plan to achieve them.
- Financial statements: Lenders will typically request financial statements, such as a balance sheet, income statement, and cash flow statement, to assess the financial health and stability of your business.
- Tax returns: Lenders may ask for copies of your personal and business tax returns to verify your income and the financial performance of your business.
- Collateral: Some lenders may require collateral, such as equipment or real estate, to secure the loan.
- Personal guarantees: Some lenders may require personal guarantees from the business owners, which means that the owners are personally responsible for repaying the loan if the business is unable to do so.
- Credit history: Lenders may request a copy of your personal and business credit history to assess your creditworthiness.
- Proof of ownership: Lenders may require proof of ownership, such as articles of incorporation or a partnership agreement, to verify that you are authorized to take out a loan on behalf of the business.
It is important to be prepared to provide all of the necessary documents when applying for a business loan, as this will help to ensure a smooth and efficient process.
