Fundera Ledger How To Prepare For Your Small Business Loan Application

By interviewing the lender to learn their underwriting standards, youll avoid wasting time submitting an application thats likely to be rejected. Complete your small business loan application as soon as possible Once you find a potential lender, Seelinger says, ask exactly what documents they want, then complete and submit everything promptly. If documents are submitted piecemeal, the entire approval process slows down, he says. Inevitably, the underwriting process will generate questions, and the bank will request clarification or additional documents. Provide them as fast as possible so you dont delay your loan approval or cause the bank to reconsider. By knowing what a lender wants, getting your documents in order and providing them quickly, youll improve your chances of getting that much-needed business loan. So what documents do you need? Documents Needed Although the documents youll need to submit will vary slightly depending on the type or size of the loan youre seeking, and your length of time in business, in general most lenders will want to see the following documents. Personal Information This includes any prior names you have used, your previous addresses and your educational backgroundsimilar to what youd provide on a job application. You may also need to provide a resume that explains your work experience. [For] startup entrepreneurs with no entrepreneurial experience, lenders will want to see proof of strong managerial responsibilities and experiencepreferably with a small business, despite not having been the owner, explains Seelinger. Your Business Plan Youll need a business plan when applying for a loan of $150,000 or more, says Seelinger, who is currently Chair of SCOREs Client Finance Committee and spent 32 years in commercial banking.
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