In order to improve your chances of being approved for a loan and to obtain a low interest rate, you should be prepared and have a loan package together prior to talking to a bank or lending institution. It pays to be organized and prepared. It also helps to understand the various lenders to know where you have the best chance of obtaining small business financing.
Our bank loan support service helps you put together a loan package and we also offer to represent our clients with lenders.
The loan package consists of the following:
- Executive summary detailing purpose for the loan and planned use of proceeds
- Personal background information (and resume if for a new business)
- Business plan – The business plan should include 3-5 years of projected financials
- Credit reports – personal and business. It is recommended that these be reviewed for errors with attempts at correction prior to applying for a loan.
- Income tax return copies – personal and business (3 years)
- Bank Statements – personal and business (1 year)
- Personal financial statements for owners with >20% stake in the business
- Legal documents (business licenses, entity articles, copy of major agreements)
- List of collateral available (in case a secured loan is the best option)
- Listing of current business debt
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