Small Business Must-Haves when Applying for a Business Loan

You probably heard it all before, you absolutely need this piece of documentation and this info regard x and this report to explain y when applying for a business loan. But, if you are like most people, after a while you get lost in all the noise and simply aren’t sure what you truly need when applying for a loan.

As a small business, you are more than likely just getting your feet wet when it comes to applying for a business loan, which is perfectly okay. Everyone once had to start somewhere and additional financing for any business can be a godsend. With that being said, let’s make it a little easier to get your business loan by cutting through some of the red tape.

For starters, it is true that you will need important documentation such as your business and personal tax returns. You will also need your business and person bank statements, your business financial statements as well are your business legal documents i.e. articles of incorporation, your commercial lease, franchise agreement and so on. Your lender may not necessarily require all of these items but it is always in your best interest to have these items on-hand when trying to secure your business loan.

Nevertheless, at this point, you are probably looking for those must-haves that were mentioned earlier and rightly so. Obviously, some of these top must-haves will not be revolutionary i.e. it is not shocking that you need strong credit to secure additional financing for your business. But, other must-haves like an updated, detailed business plan that even covers your social media presence kind of is revolutionary; since only as of recent have lenders started to factor a company’s social media presence into their overall decision to approve financing.

Be Successful and Be Prepared

Other must-haves you should have handy when applying for your loan include a compelling personal resume, credible P&L statements and in-depth knowledge of the actual loan you are trying to secure. A compelling personal resume makes the list of must-haves because traditional lenders as well as most lenders in general want to know that they are investing in a qualified individual. Obviously, your ability to run your business successfully hinges on your skills, talent and know-how, so don’t be afraid to show it. Additionally, when it comes to your personal resume make sure you thoroughly proofread it and edit your resume to near perfection. In terms of having credible P&L statements, this means your P&L statements should speak to your reliability, ethicality, and professionalism. Lastly, you already know that knowledge is power so if you truly want that loan, take the time to research your many lending options and pick the right loan the first time.

The Benefits

Clearly, the benefits of being well-prepared and on top of all your lender’s must-haves means that you are more than likely to secure that loan of yours. So, don’t think you can just fill out an application and wing it. Today’s lenders aren’t afraid to turn a small business down so you shouldn’t give them a reason to.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.