Securing the necessary capital to kickstart or grow your business can be a daunting process. While a small business loan can be an excellent financial solution, it’s essential to understand the documents required when applying for such a loan. Here is a comprehensive list of documents you may need:

Business Plan

A detailed business plan is often the first document lenders want to see. This plan should clearly outline your business objectives, strategies, target audience, marketing, and sales plans. It should also include projected financials and profitability estimates over a specific period.

Personal and Business Credit Reports

Lenders will likely request both personal and business credit reports to assess your loan repayment capacity and risk level. Good credit scores improve the chances of loan approval.

Financial Statements

Key financial documents include the balance sheet, income statement, and cash flow statement. These provide lenders with insight into your business’s financial health.

Proof of Collateral

Collateral can improve the chances of loan approval. Collateral could be real estate, inventory, or other business assets. Be prepared with documents proving ownership of your collateral.

Legal Documents

Legal documents might include your business license and registration, contracts with third parties, franchise agreements (if applicable), and commercial lease agreements.

Tax Returns

Lenders frequently require business and personal tax returns for the past two to three years. These documents reflect your financial management and income.

Bank Statements

Recent bank statements, typically from the past six to twelve months, can reflect your business’s financial stability and cash flow.

Business Debt Schedule

If your business has existing debts, a business debt schedule is in order. This document details your current loans and obligations, monthly payments, lenders, and when these debts will be paid off.

Applying for a small business loan involves comprehensive preparation and a thorough understanding of the requirements. The process might seem tedious, but having the right documents ready can streamline the process, getting your business the financial boost it needs to thrive. Innovative Commercial Capital offers a variety of small business loans with fast approvals and processing. Contact our team today to get the funding you need.