Planning is the key to getting that business loan you need for starting a business or for business expansion and change. Justin Pritchard, Guide to Banking, says, “Working with banks on small business loans can be easy or difficult — it just depends on how prepared you are.” Preparation and planning are essential to business loan success.
If you have an existing business, a lender will look at your current business records carefully to help answer questions about how your business is doing. Include information on:
Business Credit, including business credit reports, Dun & Bradstreet information, or other information that shows the status of your business credit.
Tax Returns: Federal tax returns for your business for the past three years. If you don’t yet have three years’ returns, provide as many as you have.
Profit and Loss Reports and Balance Sheets, going back at least three years, or for as many years as you have these
Current Debts: A list of business debts and your payment history on those debts.
Business Assets: A list of your business assets and current fair market value
Credit: Your personal credit and your business credit (if you have been operating your business a while)
Collateral: Amounts of cash you can use for a down payment, either from your personal funds or from your business
Capital: Business assets you can pledge to secure a loan.
This post was written by PTPGLOBAL