Small Business Loan Documents You’ll Need

Small Business Loan Documents You'll Need

small business loan documents you need

If you are considering a small business loan, it is important to know exactly which documents you will need to provide. These documents can range from proof of your living situation to income tax returns. Keep reading to find out exactly what you should be bringing to your loan application. You will also need to provide proof of your business income and expenses.

1. Business Licenses

When applying for a small business loan, you should have your articles of incorporation and business licenses handy. These documents will tell the bank how your business is structured and show the bank that you are the sole owner of your business. You’ll also need to file these documents with your state, and they’ll likely ask for them.

Once you’ve filed your business license application, the Employment Security Department will need to process it so your employees can work for you. In addition, you’ll need to apply for a minor work permit and a state unemployment tax account. Other documents you’ll need are from the Department of Labor and Industries (DOL) and the Internal Revenue Service (IRS). You’ll also need to complete forms for employees, including the federal I-9 Employment Eligibility Verification (EIV) Form, as well as the W-4 form.

The bank statements you submit with your loan application are also important. These show how your business is doing financially and how much you need to borrow. The bank statement will also let the lender determine if you can repay the loan. Other loan documents the lender may ask for include proof that your business is legally registered. This can come in the form of a business license, articles of incorporation, or a partnership agreement. Having a business license is necessary in most states, as it proves that your business is legitimate and has all the necessary paperwork in order to operate legally.

2. Business Income Tax Returns

Business income tax returns are important small business loan documents that the SBA requires. These documents must be detailed and accurately prepared. If you do not have the experience or knowledge to prepare these forms, it is best to seek professional assistance. A well-prepared tax return will help you secure a loan and avoid a potential audit.

Typically, lenders will ask you to provide two years of business income tax returns. These documents provide the necessary information to lenders about the business’s financial health, assets, and operating expenses. They also provide the information lenders need to evaluate the loan application. In addition to business income tax returns, lenders may also require personal income tax returns. These documents are important for new businesses, as lenders will want to look at both the business income and personal finances to determine whether you are a good candidate.

Small business owners have more tax obligations than the average person. They must file their business income tax returns each year with the IRS. These forms can be long and complex, but professionals specializing in small businesses will be able to assist you with these documents. They will also be able to answer your questions and ensure you are fully compliant.

3. Business Plan

There are a number of important documents that you’ll need to prepare before you apply for a small business loan. These include your personal financial statements and a business plan. In addition, you’ll need to provide any relevant bank statements and your business lease or mortgage. Depending on the lender, they may require additional documents, including your business’s income tax returns.

The business plan is a document that gives the lender an idea of the nature of your business. It should contain a concise description of your products or services and your marketing plan. It should also include information on your customers and your supply chain. Finally, it should include the advantages of your product or service over the competition.

A business plan is the first document that your lender will want to see. It shows how the business is going to operate, and it also lets the lender know whether you’ll be able to repay the loan. You can even include financial forecasts, which go deeper into the details of your business’s projected revenues and expenses.

A balance sheet is another important document that you’ll need. This shows your business’s assets and liabilities at a given point in time. Having too much of an asset or too many liabilities can make it difficult to secure a low interest rate. In addition, lenders want to see specific plans and projections. For example, if you sell to other businesses, your lenders will require an account receivable aging report. Delays in payments can affect your cash flow and profitability.

A business plan is another important document that is essential to qualify for a small business loan. This document should outline the business goals and challenges that you’ve encountered as a business. This will give the lender a better understanding of your business, which will increase their confidence.

4. Bank Statements

Bank statements that present money move for the previous three months are additionally required by most lenders. 

5. An EIN

EIN, or Employer Identification assigned to what you are promoting by the IRS.

6. Collateral

Many lenders would require collateral for a business loan.

7. Credit Score Report

Your private credit score report is one other vital doc that lenders will request. Your credit score report will present the lender your credit score history.


Picture: Envato Parts

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