Small business loan application checklist
Once you’ve determined that your business can handle taking on debt, the process of applying for a small business loan
involves rounding up the necessary documentation for your loan application. The exact paperwork differs across business funding partners, but will most likely include the following documents:
2 to 3 years of personal and business tax returns
Recent profit and loss statement
Past bank statements
Recent balance sheet
Legal filings related to ownership
Information on existing debts
Business license (if applicable)
AVOID THESE COMMON SMALL BUSINESS LOAN MISTAKES
Failed applicants commonly make the mistake of submitting inadequate or poorly planned financial documents and business plans. It’s important to gather as much well-prepared information as you can when applying for small business loans.
Close your loan
After approval, the closing process involves reviewing documentation that will determine the terms of your selected loan. A business loan contract is a legally binding agreement
that will dictate your interest rate and repayment schedule. Make sure you have a thorough understanding of what the lender is asking of you and the implications these terms have on your business’s financial future. After you sign, you’ve agreed to everything in the contract — including what happens when you make late payments or default.