Due to recent economic depression, financial lenders are getting very selective about providing business loans funding to small businesses. Therefore, it’s crucial for every business to have all the needed documents and information in place before making a business loan application so as to ensure that you’re a regimented establishment. Every business must understand the importance of documents sand information that needs to be presented to the business loan lender. There are forms and information that a business must have before applying for a business loan.
Business Officer’s Information:
According to new banking laws and regulations as put in effect after 9/11, you must have all the private information of each officer of the business as the same is certainly needed before you even get started. The information includes every officer’s license and social security cards copy, last 3 years of private tax statements of every officer as the same is used as a personal guarantee for the business loan amount.
Business Incorporation Documents:
Every state has its very own criteria of incorporating a business, so every business must supply a certified copy of Articles of Incorporation to the lender. These certified copies will often have the state seal as well as the official identification date of incorporation.
All federal filings are also required to be supplied to the lender along with your business loan application. Usually a copy of the acceptance of your “S” Corp, if filed as a “S” Corp, is required along with the receipt of your EIN that you receive from IRS.
At most occasions, you might have to show to the business loan lenders that you have correctly filed all of the necessary paperwork with the state just to ensure that you are legitimately established and there aren’t any State or Federal liens on you. The filings include your sales tax number as well as your unemployment amounts.
Business Tax Statements:
A business last 3 years tax statement is also necessary to be supplied to the lender. So, every business must have a full copy of these statements. Other tax obligations include any tangible or intangible taxes you’ve compensated or any property taxes. It is important that the same must have been paid and not due on the business.
Having a well-organized business plan can put a great impression on the loan officer when applying for a business loan. The above checklist shows lenders that you’re fully prepared as well as can saves time. Due to recent economic downturn, getting business loans has gone harder but if you come organized, the chances are that you’re likely to get a constructive result.