The process of getting a small business loan from a bank can be demanding from the start. The specific documentation required for your loan application will vary depending on the type of loan you are applying for, but here are some of the typical documents you can expect a bank to request:
- Personal background information such as previous addresses, names you have used, criminal record, and your education history
- Your resume, because banks often want to know your experience related to running a business before taking a chance on you
- A business plan, including profit and loss, proof of cash flow, and the balance sheets from your business
- A credit report from all three major consumer credit reporting agencies
- Personal and business tax returns for the past three years
- Signed personal financial statements (if you own more than a 20% stake in your company)
- Projected financial statements
- Personal and business bank statements for the past year
- Documentation of the cost or value of the personal or business property you would put up as collateral if necessary
- Legal documents including business licenses and registrations required for you to conduct your business, articles of incorporation, copies of contracts you have with any third parties, franchise agreements, and commercial leases.
If this sounds like a lot of paperwork, that’s because it is! This is why Bankroll is a viable alternative to going the traditional route.
If you have any questions about what your bank will require for a loan, your dedicated loan specialist will be happy to help.