Aug 26
Basic guide for applying or a business loan
August 26, 2016
Start with just 3 steps
Whether you are just starting or have been established for some time, a business loan is a viable option for any business owner who, like you, wants to get ahead. To facilitate the process, it is important that you plan, get organized and have at hand all the documents that will be required by the financial institution you choose. Here is some advice that will be a big help to you when you apply for a business loan.
- Identify the reason for your application
- Tax returns and financial statements for recent years
- Detailed information on accounts payable and receivable
- Investments and fixed assets
- Historical cash flow statements along with projections for the current year
- Copies of contracts with most important customers, if applicable
- Patents and any other exclusive intellectual property
- Description of the business
- Marketing strategies
- Competitive analysis
- Development plans
- Operations
- Administrative plan
- Key employees
- Financial information
- Ensure that filings of payroll, property and tax returns are up to date.
- Establish policies for credit and accounts receivable and ensure they are followed. This will help you have a healthy cash flow.
- Ensure that your accounting system reflects the status and results of your business.
- Have appropriate insurance to cover debts and property damage. This way, you protect what you have built over years of work and effort.