There is no doubt that if going to your bank to get a loan is an option for you, that is going to be your best, usually most affordable way to get access to capital for your business. But is that really an option for you? Here are the things that you will typically need to have ready for any traditional lender to even consider lending to you:
- A full business plan with financial projections.
- A detailed explanation of the purpose of the loan.
- Amount of funds being requested, and a detailed breakdown of the usage of those funds.
- Your credit history needs to be stable (if not stellar) and you’ll need to allow them to pull your credit report, and also provide them with a personal financial statement. If your credit score is below 600, qualifying for any standard bank loan is going to be very tough. If you have a score that is over 700, you are in pretty good shape credit wise.
- Know what your business credit score is, and be prepared to explain any issues with on-time payments.
- Collateral will almost always be required.
- Business and personal tax returns for at least the last 3 years.
- Bank statements for the business, and often your personal bank statements will be reviewed as well.
- Be prepared to show them a balance sheet for the business.
- They will want to see your complete business debt schedule.
- They may want to view your most recent accounts receivable/accounts payable reports.
- Financial history of all owners who own 20% or more of the business.
- And there’s always more….
Again, if this IS an option for you, it’s one to highly consider. We can help with traditional lending options as well. Let’s start by going through our simple questionnaire to learn more about you and your business and determine what options may be best for your specific situation.