Business credit application completion can seem like an insurmountable task at times. The standard business credit application calls for you to complete more documentation than you fill out when you apply for a home loan and certainly more than for any consumer credit.
Lenders when considering supplying credit to a business most make sure that the business credit application contains not only everything they need to know about the business, but everything the want to know about the entrepreneur too. That is because business lenders normally tailor each loan to suit the needs of the business. That means it is important for you to prepare well in advance of the business credit application the documentation that will be required of you.
Most lenders will want to see a well prepared business proposal with the proper support documentation. Your proposal will include clearly stating the purpose of the loan. Exactly what the money will be used for such as working capital, expanding operations, inventory, capital equipment, etc. You will need to justify the amount of funds you need, how long you need it and what will be the repayment schedule. Your support documents should include:
- A description of the business and the market it serves.
- Related experience resumes of each principal.
- Purpose of the loan and use of proceeds.
- A three year business plan with cash flow model.
- Repayment schedule showing ability to repay.
- Collateral that is available to secure the loan.
- Business and personal financial statements.
- Business and personal credit score files.