More than 30% of American small businesses get turned down for at least some of the loan, line of credit, and/or cash advance funding they apply for.
Reasons for this can range from having a poor business plan to an unrealistic valuation to having a questionable founder. But what really shouldn’t be a concern is your business’s ability to repay the loan.
What docs will you need to get business financing?
When you apply for financing with SBS Funding Group, we collect some information about you in order to assess your risk. This helps us match you with the right lender. The application process takes about 15 minutes.
To get started, click “Verify your business.” You’ll need the following documents:
-3 months of business bank statements
-Copy of your driver's license or state ID,
- Voided check from your business account
-Proof of business ownership.
We just need to make sure everything is in order before we get started!
In order to process your loan request, we will need to know the amount of money you would like to borrow, as well as some general information about your business. We will also need your birthday and social security number.
BTW, SBS will conduct a soft credit pull, but that won’t impact your credit score.
What documents will you need for the next stage?
After we receive your application, our financing network will review it and let you know what you're eligible for. Depending on the types of loans or other financings you're being offered, you may need to provide some of the following documents before your financing funds.
Tax returns:
Tax returns are like a financial x-ray for your business- they provide a clear picture of your company's earnings, how much money you're drawing from the business, and how much cash you have on hand. Some lenders will want to see that your business is profitable (or at least has a clear path to profitability). Others will be more interested in your personal financial situation- how much money you have in the bank, investments, etc.
Business Bank Statements:
You have already uploaded three months' worth of business bank statements, but some types of financing may require additional information. These documents are used to show lenders your cash flow patterns. By the way, these will need to be business bank accounts, not personal accounts.
P&L Statements:
A lender may ask to see your profit and loss statement or other documents that indicate your cash flow, like a balance sheet or a debt schedule. Your accounting software can help you gather these documents.
Business license and related documents:
If you need to upload your business license, most lenders will be able to provide this document for you. You may also be asked for a copy of your LLC or articles of incorporation, but this is usually only if it's relevant to your business. Thank you for taking the time to provide this information.