How to Get a Business Loan – And the Documents You Must Know
Preparation is one of the keys to success. And lack of preparation is also a way to destroy your company. To avoid this, you must know how to obtain commercial Loans in an appropriate manner. In general, people who are thinking about how to get a commercial Loans, have no idea how much they should use to get a good one. They do not even know the information they should keep in mind. First of all, you should know the following information to make sure you and your lender understand each other.
This is a document in which you must indicate why you are applying for Loans for small businesses. Explain clearly that you will use the money where you will lend. It really is not necessary to insert melodrama. Be as honest as possible.
Projection of cash flow.
Here, your lender will know how the loan given to you is being paid. The promised dates will be paid when you pay the given money and, if you have not done it in time, the risk is recorded in the projection of the cash flow (a solid financial data).
Personal financial statements.
This is a document that deals with the owner of the company. Here is what is written on the list of properties, liabilities, and capital of business owners. Keep in mind that this is called a personal financial statement because it is about the owner, not the company. This document is important because, through this, the lender will have an idea or background on the owner of the company. If the company has not paid the loan itself, then the responsibility of the company can be extended to the owner’s personal property.
Last business tax return
If your company has ever been established before applying for commercial loans and has filed a tax return, you should take them with you. This allows the creditor to have a good idea to financially stabilize their company.
Credit rating report
This is not really necessary because the lenders themselves can see your credit rating report. However, is not it better that you know what the report says about you and your company? For example, your lender may ask you something related to your credit rating report. You will think that if you know what is happening with that, then you really care about your company.