There are many reasons a business owner would need access to quick funding from financial lending services. It may be that you experienced the breakdown of business-critical equipment, or there’s an opportunity to expand or to capture additional profit that’s simply too good to pass up, but you need additional capital to get things done.
Whatever the reason for your financial requirements, make sure to go over the items in this checklist to get the necessary funding or business loan:
1. Business loan application requirements
The requirements needed for quick funding or to get a business loan typically differ by lender and financing type. However, the following items are usually required during application:
- Personal information: This includes your full name, address, marital status, social security number, etc.
- Business information: To assess the viability of your business, you may be asked to provide your full business name (including your “doing business as” or DBA name), including your Uniform Commercial Code (UCC) liens or claims against your business assets filed through the Secretary of State office. Additionally, you need to supply your employer identification number (EIN), industry (there are certain industries with higher failure rates or considered high-risk), business structure (e.g., sole proprietorship, partnership, LLC), ownership or partnership information, and time in business or length of operation.
2. Documents required for business loans
Financial lending services typically require certain documents to accompany your loan application:
- Corporate documents: This refers to documents that were created when you filed for incorporation, and includes bylaws, articles of incorporation, franchising information, board member certification, and stock ledgers (if any).
- Deed or lease for a commercial property
- Business licenses and permits: These depend on your industry, location, and business entity. Check if you need specific licenses and permits from various government agencies.
- Business plan: It can be used to evaluate your creditworthiness. Your business plan should include your mission statement, value proposition, target market and customer information, product/service information, financial projections, marketing and advertising strategies, and important details that can help show the potential of your business in the long term.
- Tax returns: They help to provide lenders an overview of your finances.
- Bank statements: These are used to assess your capacity to make loan repayments.
- Balance sheets: They show your business assets and liabilities. Be ready to provide a year-to-date balance sheet, at a minimum.
- Profit-and-loss statements: Some lenders require P&L statements to show annual revenue. Be ready to furnish copies of your quarterly and year-to-date profit-and-loss statements.
- Accounts receivable and accounts payable statements: They help to show your efficiency in collection, as well as in paying off what you owe your vendors and suppliers.
3. Financial requirements for a business loan
To ultimately decide on what loan amounts, interest rates, and repayment terms you will be given, lenders would want information on the following:
- Your personal credit score: This is something that can affect your fundability, especially in the case of unsecured business loans.
- Business credit score: Expect this to be extensively scrutinized as it can significantly influence getting approval, especially from banks and SBA lenders.
- Debt service coverage ratio (DSCR): It helps lenders determine how much you’re capable of paying.
Gain access to quick funding with Capital Dude
Not all immediate business needs have to do with a crisis. There are plenty of opportunities that can arise when a business needs to act quickly to get the capital they need to expand or grow.
The thing is, there are a lot of requirements you need to provide traditional financial lending services to apply for a loan. You also need to be patient and wait until your application is processed.
With Capital Dude, all you need to do is invest 5 minutes to complete our online form. Then we’ll get back to you with the result in a few hours.
If you need quick funding, please get in touch with Capital Dude.
