As your small business takes off, chances are you'll need to accommodate your growing consumer base with everything from more space to updated equipment. However, having the money for these business necessities on hand isn't always a possibility, especially when your company is in its early stages. This is where small business loans come in. They may be able to provide you with the funding required to ensure your company is continuing to thrive.
Before you can get the loan you need, you'll have to complete a business loan application. Increase your chances of a smooth process by being prepared with these must-haves.
1. Your business' full details
One of the first steps involved in the process is filling out a loan application form. To complete this without difficulty, you'll need to come prepared with all the details about your company. Be able to give information on your products and business partners as well as how and why you started your company.
2. A business plan
You'll be required to submit a detailed business plan with your loan application. Know how you plan on continuing your company's success and what you're going to do with the funding if it's provided to you. The more information you give, the more seamless the process will be. Lenders want to feel confident that you know exactly which direction you want your small business to go in and how you're going to get it there.
3. Business credit report
Your business' credit history is something that lenders are going to want to have some information on before they loan you any money. It's important that you know your company's credit history just as well as you know your own. Have your business credit report ready to go.
4. Financial statements
Many lenders will ask for projected financial statements. These should be created using information from bank statements, balance sheets, cash flows and income statements. This is why it's important to stay organized and keep track of important business records, as it will make it easier to gather everything you need to apply for your loan.
5. Legal documents
The final items you'll want to consider bringing along are your company's legal documents. Come prepare with the following forms:
- Business licenses and registrations
- Articles of incorporations
- Copies of contracts with any third parties
- Franchise agreements
- Commercial leases
If you're thinking about applying for a small business loan, start getting organized and cross these requirements off your checklist to ensure a seamless application process that will get your company the funding it needs in no time.