What You Need To Access Different Types of Small Business Loans
After affirming the 20 documents you need to secure small business loans, you will most likely not be interested in getting one—for reasons well understood.
However, as a small business owner you decide to give it a shot, then you will need thorough, prior, preparation. And providing all the 2O documents, on time, without affecting your business, is next to impossible.
The good? Not every lender demands so many documents and information for you to qualify for small business loans. If anything, only a bunch of lenders will request you to produce the 20 documents to initiate the application process.
Below Is a List of Business Loans and The Documents Needed
1. Small Business Loans & Long-Term Loans
SBA loan application process is thorough and complicated. Should you decide to apply for long-term loans or SBA loans, be prepared to produce the 20 documents.
2. Medium Term Loans
Though their loan requirements are still stringent, they remain slightly favorable than SBA loans. To apply for medium-term loans, you will be required to produce a bank statement, profit and loss documents, business tax remissions, personal tax returns, and a credit report.
3. Business Lines of Credit
Generally speaking, business lines of credit loan application process is quite flexible,but this highly depends with your lender. On the minimum, you might be requested to produce just a bank statement and credit score.
Nonetheless, the top-ranking lines of credit will ask for similar documents that you will be needed of in preparation for a term loan, that is, a balance sheet, business returns, personal returns, and statements—both bank and profit and loss
4. Short Term Loans
A smooth application process characterizes short-term loans. Necessarily, you will only be required to provide your bank statement, and credit score and in a few instances, your business returns.
Invoice financing highly depends on whether you have an outstanding invoice or not. The only document that is required for this kind of lending is your unpaid invoice, credit score, and bank statements.
Similar to invoice financing, equipment financing mostly depends on the assets that you are going to buy. An ideal candidate for this loan will probably need to produce aquotation of the equipment they are going to buy, bank statements, credit score and business tax returns.
Merchant cash advance is the easiest to qualify for business loan option. But it is the most expensive in the long run. All you need to produce are bank and credit card statements, business tax returns and credit score.
Peach Capital Funding can provide you with a business loan that helps you grow your business while giving you the working capital you need to run your business properly. Find out how we can help you get qualified for a business loan and help you get funding fast!