Business loan application steps.
There are three parts to preparing for and applying to a lender for a business loan.
First, you’ll be assessed by a lender before you can dive too heavily into the documentation process. The three primary factors that will determine your eligibility for a loan are credit history (business credit score), cash flow (how much money is moving through your business currently), and available collateral (property and other assets you offer or put up to secure the loan).
These factors will determine how much you’ll be able to apply for, whether you’re seeking a private loan or one through the SBA. If one of these factors isn’t in great shape, that can affect the overall loan availability. But a strong showing in one category (for instance, if you have many assets as collateral) will help you get a larger loan or overcome bad credit.
Compile the document haul.
Next, the lender will likely ask for more documentation. This is a great time to start organizing things in a cloud library for easy sharing and access. Document Cloud can provide the assist with a searchable online library of all your important documents.
The most commonly needed documents to have available are:
- Tax returns and tax documents
- Credit score information for both yourself and your business
- Business and personal bank statements
- Business plans, including a growth plan
Acing the application process.
Once you’ve got all the documentation together, and you’ve passed through the initial assessment, it’s time to work through the full loan application.
If you’ve done your due diligence, this part shouldn’t be too difficult. But it can be a pain to print, scan, and send all sorts of documents. With Acrobat Sign, you can organize, manage, and securely sign all the documents you need for a loan application with a minimum of fuss, and most loan applications will allow digital signatures. Plus, there are many useful templates to help you get started. Extra funds are only a few documents away.