Steps to take to ensure your application for a small business loan is a success
Ensuring you understand everything that is required by a lender before you apply for a small business loan is imperative. Consult with a trusted business advisor who can assist you with preparing the key elements that a lender will need to evaluate your application and give you confidence to present yourself in the best possible way.
Evaluation
An advisor can confirm the amount you need, properly communicate the purpose of the loan and help you to consider your financing options. It may even be the case that a loan is not necessarily your best option.
They can also help you to examine your current finances and the implications of taking on a loan for your business’ future.
Documentation
Banks and other traditional lenders require a substantial range of paperwork when you apply for a small business loan. These include:
- Financial projections
- Personal and business income tax returns
- Balance sheet and income statements
- Personal bank statements
- Business bank statements
- A copy of your driver’s license
- Business licenses
- Commercial leases
- Articles of incorporation
- Information on your suitability to take the loan on
Business plan
A lender will want to see how you plan to utilize the money and that you have the ability to repay the loan as well as your regular ongoing business expenses.
A business plan created in consultation with your advisor will help to show this, and highlight how you expect it to improve your business’ profits. A well-constructed business plan can make all the difference in getting the decision you need.
Contact TaxAssist Advisors
If you need any help or advice with the financial aspects of running your business, please contact us today by completing our contact form. We’ll be glad to help.
Last updated: 8th July 2022