What are the primary requirements for a Small business loan?
When it comes to eligibility for the business loan, you have to complete different criteria for different banks and lenders.
The banks used to demand additional criteria whereas the lenders do not want such criteria.
After the qualification you can apply for the loan; it will not take more than 10 minutes to complete the form.
How to fill up a form?
Each lender and banks will ask you about your basic information such as the name of the company, address, contact number, email address and more.
It may demand other details like credit score, business history, and profit history and business experience.
You have to provide more information to get the approval of the loan.
You have to inform them with the following information.
Your company and business details.
Your business timings and business hours.
Annual sales report as well as figures.
Annual business profit before paying taxes.
What you need for a small business loan?
You have to submit the business plan along with the loan application it will help them to get an overview of your business growth.
Apart from that, you have to submit annual financial statements including profit and loss account, balance sheet and cash flow statement.
There are many lenders who also demand the evidence of the business experience
You have to submit such documents to give them a brief idea of your business.
How to submit the reports?
Once your reports are prepared then, you can submit the same over online.
If you are going to start a new business, then you have to mention the same on the application form
It will be better if you submit your credit report before the application process.
How they manage the huge applications?
There is special software which handles all the applications automatically.
It collects the additional information such as credit report, financial report and more and stores the same in the database.
Apart from that it also verifies the data with government database after that it is available for manual review. That process may vary from each lender.
What are the documents to be submitted?
You have to submit the hard copy of the following documents.
Business history and personal credit history both are required.
If the case of startup and personal business you have to submit your business experience along with the financial statement.
Documents of the business plan.
Cash flow and another import statement from the last five years.
In the case of a small business loan, you have to give them collateral for the secured loans.
You can submit the documents of the collateral.
Income statement, cash flow statement, and bank statements are required.