Getting a loan for your business can full of anxiety and trepidation. It’s not just waiting for the decision but getting all the documents together for the loan application. When you know what the lender wants before you apply, it will be much easier to prepare.
Here are some of the requirements for different types of lenders.
SBA loans typically require the most documentation and paperwork for the loan application. At a minimum, you’ll need:
- The past two to three years of tax returns for the business and all principals
- Financial statements from the past year
- Year-to-date financials
- Bank documents for the past three to six months
- Legal business documents, lease, state registration, etc.
- Credit scores for principals
- Business plan
Banks and other lenders will generally want to see your financial statements for the past couple of years and your credit eligibility. You may also be required to provide your building lease, registration papers, and tax documents. Call the lender and ask. Having all the documents when you go in to ask for a loan can shorten the process, but bank loans are never very fast. Showing that your business is healthy and can pay back the loan will keep you in the running.
Using an alternative or online lender offers relaxed loan applications. Depending on the type of funding, you may not even need a credit check. The loan application will be based on what type of financing you want. You’ll probably need your bank account information and three to six months bank statements. But fast funding can come at a higher rate than traditional loans. Sometimes, it’s worth saving your business, but always read the fine print to make sure you’re making a good decision.
Don’t be daunted by the paperwork you need for your loan. Speak to the financial experts with 5 Star Funding Group about funding your business.