With the current credit crunch, lending institutions are being very choosy about those who are going to receive business loans. This is why it is imperative that when you are applying for the loan that you have all the needed information with you so that you look like a well-organized business. There are a variety of forms and information you should have and here is a checklist that you should use to get ready to apply for a business loan.
Officer's Information-You will need to have all of the personal information for every officer of the company. With the new banking laws put into effect after 9/11, it is certainly required before you can even get started. This information should include photocopies of each officer's driver's license and social security cards. You will also need to have the last three years of personal tax returns for each officer; this is because the officers are going to be required to sign personal guarantees for the loan.
Company's Incorporation Papers-Each state has its own requirements for how to incorporate your business. You will need to provide the lending institution with a certified copy of the Articles of Incorporation that you have filed with the state. These copies usually have the state seal and will also have the date that your corporation was officially recognized by the state.
Federal Paper Work-You will also need to supply the lender with all your federal filings. This will include your EIN (Employer Identification Number) and if you are filed as an "S" Corp you will also need proof of that filing. Usually, just a copy of your acceptance of an "S" Corp is needed and the receipt you receive from the IRS for your EIN.
State Paper Work- Many times you will need to show the lender that you have properly filed all the necessary paperwork with the state. This can include your sales tax number and your unemployment numbers. The reason for this is because the lender wants to make sure that your business is running completely legitimately so there will be no state or federal liens that can be placed on you.
Company Tax Returns- You are also going to need to show your company's tax returns for the previous three years. Make sure that you have a full copy of them. Other tax payments that you should have ready for them to see are any tangible or intangible taxes you have paid or any property taxes, it is important that these are currently paid and not outstanding.
When you are applying for business loans looking well organized makes a great impression with the loan officer. Take all of the above-listed items and make a copy for the bank to keep. This looks like you are well prepared and also saves valuable time while you are at the bank. It is getting harder to get business loans but if you come in looking well organized you are more apt to receive a favorable result.