What Documents Do I Need to Apply for Small Business Financing?
When making a decision to approve or deny a loan, lenders look to answer one main question: Will you repay what you borrow? Your lender will ask for documents like your cash flow statements, credit score or business license to help them make their decision.
The documents you provide help lenders see your business as a whole and can help you secure financing. Let’s take a look at what documents you may need and why they’re important.
Your Business Plan
Before you apply for financing, it can be helpful to outline why you need the funds. This can help you determine what kind of funding is best for your business and how much you need to reach your goals.
Lenders may appreciate that you can show how the funding will help you grow or improve your business — whether it’s a line of credit to help manage your cash flow or a loan to expand your inventory.
“A loan can help you grow and maintain your business, ensuring long-term success. Finding the right loan for your business will take some time and effort. However, you don’t have to go through the process alone. Hawthorne Business Capital offers a variety of services to help small business owner grow their companies.”
Jeff Hawthorne Vice President of Partnership DevelopmentYour Business Finances
You may need to provide some documents that show the inner workings of your business’s finances. This could include:
Your financial statements can help lenders get a better understanding of how your business works. They may ask to connect to your business bank account using a third party service like Plaid. This is a standard and safe practice that can make applying for and receiving funds easy and seamless.
Other Documents You May Need
There are few other important documents that you may need to provide. These documents help the lender verify your identity and the legitimacy of your business.
• IDs or Social Security Number — Lenders may ask you to provide your personal information to confirm your identity.
• Proof of Ownership — Your lender may ask you to provide proof of ownership. If there are multiple partners and you are not the majority shareholder, you may need to show a letter stating that you have authority to request funding on behalf of the business.
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