Business Loan Application Checklist: Fill & Download for Free

Most types of business loan carry minimum requirements that small businesses need to meet to be eligible to apply for funding. Moreover, all types have their own set of documentation requirements.Well, basically, there’s no conclusive, all-inclusive answer to this general question. How business loan application process works is almost utterly situational—numerous factors go into it, that there’s no way to provide an accurate answer. Because the answer based on your business and the type of loan required. Before you dive deep into the application process, we will walk through everything you’ll need to apply for business loan application.Your Small Business Loan Application Checklist· Form of valid ID· Personal background· Resume· Business plan· Industry type· Time in business· Business license· Proof of ownership· Customer list· A/R aging statement· Bank statements· Balance sheet· Profit and loss statements· Tax returns· Personal credit score· Business credit score· Business debt schedule· Rent/real estate schedule· Landlord subordination form· Latest accounts payable statementQuestions Lenders Will Ask You In Your Business Loan ApplicationWho Are You?· One Form of Valid ID· Personal BackgroundWhat is Your Business (And Is It Legit)?· Resume· Business Plan· Industry Type· Time in Business· Business License· Proof of OwnershipWho Are Your Customers?· Customer List· A/R Aging StatementAre Your Financials Strong?· Bank Statements· Balance Sheet· Profit & Loss Statements (Income Statements)· Tax ReturnsHave You Been a Responsible Borrower in the Past?· Business Credit Score· Personal credit scoreDo You Owe Anyone Else?· Business Debt Schedule· Rent/Real Estate Schedule· Landlord Subordination Form· Latest Accounts Payable StatementQuestions you should ask yourself before submitting a business loan application· Am I Prepared to Take on a Business Loan?· Do I Know What Kind of Loan I Need?· Have I Considered All My Options?Prepping For Your Business Loan Application: Best PracticesHere are few top tips for you to complete your business loan application like a pro:· Be Prepared: It takes time and preparation to put together all the paperwork in order to stay on the top of your small business loan application checklist.· Be Authentic: Always share the correct information with the lenders when you make a loan application. Avoid sharing wrong information they’ll find out.· Be Truthful: Don’t misjudge your ability to acquire a business loan, else you will end up hurting yourself.

The process of business loan differ by lender and the type of loans. There are some other factors that can count such as lender’s guidelines and borrower creditworthiness. Most of the small business lenders in US follow the SBA underwriting guidelines. Most lenders even within the SBA network, however, have sterner guidelines than SBA. Nonetheless, SBA guidelines are useful as a framework for understanding how many small business loans work and what lenders expect when you apply for a loan.The process involved four steps which are;Loan applicationUnderwritingApprovalLoan closingLOAN APPLICATIONThe loan application process begins with you contact your lender and fill the application form for the funding.UNDERWRITINGYour underwriter will process the details from your loan application, examine your business and loan request, and prepare the loan report that goes to credit committee.APPROVALThe lender will then forward your loan request for the approval process to the concern department. They will evaluate your business loan application for approval.LOAN CLOSINGOnce all the items on the closing checklist have been received and successfully reviewed, the loan closing will be scheduled.

Here are the most common requirements you’ll need when applying for a small business loan:Credit Score. A personal score of at least 650 is required. You also need to submit a credit report as well.Time in Business. Need to be in business for at least a year. For banks, time in business is at least two years. For startups, time in business is at least 3 to 6 months.Annual Revenue. Annual revenues of $50,000 to $150,000.Personal debt-to-credit ratio. For many too much personal credit is a risk — you could turn to that credit if your business runs out of money.Operating Income. Net operating income at least 1.25 times greater than your total expenses.Potential Collateral. You need to provide collateral If applying for a secured business loan. If you don’t have a collateral, you can apply for unsecured business loans.Funds Usage. You need to specify exactly how you intend to use the loan. Some lenders may limit how you spend the approved cash.What information do I need to provide with my application?To initially complete your small business loan application, you’ll typically submit:Full name, contact information and marital statusFull business name, address, phone number and email addressIndustry and the date you started your businessBusiness annual revenuePersonal financial statementsHow much cash is requiredHow you will use the loan amountWhat documents will I need to provide after I apply?Business planPersonal credit scoreBank statementsFinancial statementsBalance sheetsTax returnsPersonal financialsCollateralHow to qualify for a small business loan step-by step?Step 1: Pinpoint why your business needs a loanStep 2: Calculate how much you needStep 3: Review your credit reportsStep 4: Find a loan you and your business are eligible forStep 5: Get your documents in orderStep 6: Complete your applicationStep 7: Provide collateral (optional)Your business financing application checklistPersonal credit scoreAge of businessIndustry typeFunding amount neededIntended use of loanMinimum annual revenueBusiness bank statementsRevenue statementsBalance sheetsBusiness and personal tax returnBusiness plan & debt scheduleRevenue forecastCollateral documentationPayroll recordsBased on your business size and desired loan amount, you may qualify for multiple funding options from a variety of lenders. Getting approval from traditional banks can be hard, whereas online lenders provide small business loans at affordable interest rates and flexible terms. Start exploring your financing options today to find a small business loan that best fits your business and keeps it profitable and successful in the future.