When applying for a small business loan, being prepared is key to ensuring a smooth and fast process. As the saying goes, "Stay ready so you don’t have to get ready." Having the right documents ready is essential for a successful application. Here are the key documents you’ll need:
- Last 3 Years Tax Returns (Personal and Business)
Lenders want to see your financial history. Your personal and business tax returns for the past 3 years provide valuable insight into your income, profits, and tax obligations. - Current Year Profit and Loss Statement
A current Profit and Loss (P&L) statement details your business's revenue, expenses, and overall profitability. It helps lenders assess whether your business is generating enough income to cover loan repayments. - Current Year Balance Sheet
The Balance Sheet outlines your business’s assets, liabilities, and equity at a given point in time. It allows lenders to evaluate your financial stability. - Accounts Receivable and Payable Reports
These reports show outstanding customer invoices and unpaid bills. Lenders use this information to gauge your business's cash flow and ability to meet financial obligations. - Personal Financial Statement (PFS)
A Personal Financial Statement (PFS) outlines your personal assets, liabilities, and net worth. This helps lenders assess your personal financial situation, especially if the loan requires a personal guarantee, which it will. - Bank Statements
Bank statements from the past 3 to 6 months provide a snapshot of your business’s cash flow, helping lenders understand how you manage your finances.
Being prepared with these key documents not only speeds up the loan process but also increases your chances of approval. Stay ready so you can secure the funding your business needs to grow!
Glenda Walker, CEO
Relationship Management Solutions Inc. (RMSI)
Office 877-354-7040 ext. 1001
Mobile 470-485-4009
Glenda@Rmsifundings.com
website www.Rmsifundings.com