Your Personal Credit Report Before applying for a business loan, get a copy of your credit report from each of the three major credit rating agencies (Equifax, Experian and TransUnion). You can get a free copy of your credit report from each agency once every 12 months; visit the FTC website for details. Correct any mistakes immediately. If your personal credit score is above 700, you may qualify for loans from traditional banks, regardless, alternative lenders may be an option for people with all kinds of credit, both excellent and in need of improvement. Your Business Credit Report Unless you are a startup, the lender will also pull a business credit report. Check your credit report first through D&B , Experian and Credit.net (youll have to pay for a copy) and correct any errors. A good business credit score is 80 or above (on a scale of 1-100). Income Tax Returns Lenders generally require both personal and business income tax returns, including schedules, for the past three years. Financial Statements In addition to incorporating historical and projected financial statements into your business plan, you may also be asked to submit projected financial statements separately. Typically, lenders require monthly or quarterly financial projections for the first year, then quarterly and/or yearly projections for the next four years. Bank Statements Bank statements support the claims you are making in your financial statements and projections.
For the original version including any supplementary images or video, visit https://www.fundera.com/blog/2014/07/10/small-business-loan-application/