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Standard Document Requirements
To avail a bank loan one needs to submit certain documents. Banks use these documents to evaluate the eligibility of the loan applicant. The documents demanded by most of the banks are nearly the same. Anyhow, it is better to be properly informed about the documents that will help to persuade the lender that a business loan is necessary and that you are credit worthy.
The following are the formalities that a businessperson needs to follow to apply for finance:
Documents to Gather Before Applying for a Business Loan
- Business details like revenue, size, debts, credit reports, ownerships and business history.
- Business financial statements
- Details of experience in current business
- Income proofs.
- Details of personal and commercial tax return in last two years, and your liquid money assets
If you have been in business for at least three years, the following information will be needed:
- Three years of financial statements including balance sheets and income statements
- Interim financial statements if it has been more than three months since the fiscal year-end or if there have been significant changes in the business.
- Complete personal financial statement
- Two years of personal tax returns (all schedules attached)
- Business Resolution to borrow (If applicable)
In addition, If it less than three years old, we will request all financial statements and tax returns to date. If you are new in business, the following information will be needed:
- Your Business proposal should include a complete business plan including a description of your business, the market in which it will operate, key management, market research recommendations
- A completed personal financial statement
- Two years of personal tax returns having all schedules attached.
- Detailed Business Plan if a new business
- Cash Flow Analysis
- Business Averages and Norms for operating funds or inventory loans
- Agreement by all owners to sign individually and as authorized representatives of the business
- Signed Loan Agreement and Promissory Note stating the right of the credit union to request financial information and the right to inspect the business property as well as any other conditions the credit union wishes to establish on the loan.
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