Feb
15

3 Required Components of a Small Business Loan Application

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small-business-loan-expansion-costs-approvedI am running around, ragged, full speed ahead all day long managing my own business.  It is nonstop work and I love it, but there comes a time when I need to begin expanding and hiring more help.  I cannot do it solo and expect the company to continue running efficiently.  It is time to apply for a small business loan, and by going through the process I discovered what is needed to ensure I qualify.  I am going to share this with you now saving you headaches and time.

Documents for a loan create the heart of a loan application.  It is what a lender needs to decide if you qualify or not.  Here are the top three documents you need to start organizing as soon as possible.

Revealing Expansion Strategy in Business Plan

A business plan is essential to your business.  If you have been running a business for a while, then you already own one.  But you need to make sure it covers expansion strategies.  Does it describe what occurs when company growth happens?  Do you cover how the money will be allocated?  You need to show the lender in writing how the money will be used and in what arena.  Is the money needed for new equipment to handle the additional business or to cover more employee costs?  Be thorough in your descriptions.

Disclosing Assets to Lender

There are unsecured business loans that do not require collateral.  However, if you apply for a traditional small business loan, then be prepared.  You need to supply the lender with information about available cash, debts, business equity and more.  Offer the lender a full picture of your financial situation.  It helps the lender make an informed decision about your application.

Telling Business History on Paper

Share with the lender a document covering the business history.  It includes information about the birth of the company, how many employees work for you, annual earnings, etc…It is a comprehensive background about the company.

To find out more talk to one of our small business loan experts today!

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  4. Tips on How to Apply for a Small Business Loan
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