Your great idea for a new business is taking shape. You’ve smoothed out your business plan and are ready to invest some of your own money to get your startup off the ground. But you still need more capital to make it work.
If you’re considering a small business loan from a government agency, nonprofit organization or commercial lender, here are the basic documents you’ll need to have prepared to ensure your loan is reviewed and processed as quickly as possible, according to the U.S. Small Business Administration:
Somewhere in the loan application you’ll need to provide personal background information such as names used, educational background, previous addresses and criminal record (if any). Your resume will help show you have the experience or skills that’ll help your business success.
Your lender will require a solid business plan that shows your projected financial statements, profit-and-loss margins, balance sheet, cash flow, management team and more.
Review your credit report at least a month before you apply so you’ll know exactly what your lenders will see when they obtain your report. This will also give you the opportunity to correct any inaccuracies in your credit report that may negatively impact your application.
Income tax returns and other financial statements
You’ll need to show personal and business income tax returns from the past three years. Personal and business bank statements will be required, too. Also, owners with more than 20 percent stake in your business will need to submit/sign personal finance statements.
Depending on your loan program and lender, you may be required to offer collateral to secure your loan. This will require a document that describes the value of personal or business property that you’re offering as security for the loan.
Your lender may also ask for legal documents related to your business such as business licenses, articles of incorporation, third-party contracts, commercial leases and more.
If you’d like to learn how Travis Credit Union’s Business Services can help your new business, visit our website to request more information or give us a call at (800) 877-8328. You can also visit the Small Business Administration’s website.
Account Details SBA website