For small businesses, access to finance is a major challenge. You might find yourself being unable to afford necessary costs. Due to this, many business owners decide to apply for bank-issued loans.
- Personal Information
Even though you’ll be borrowing money for your business, the bank would require some specific information about you. In addition, banks usually also request the following personal information in your application- Addresses, Criminal record, Information on your education, Tax returns, Financial statements, Assets, Personal Loan Balances.
- Financial Statements
In addition to personal financial information, you’ll also need to submit your business’s financial statements. The amount of statements varies depending on the bank you’re applying to In addition, they may want to see your business’s bank account balances. Once submitted, the bank will analyze these documents to determine whether you are a strong loan candidate.
Even if your business or personal credit history falls below bank loan requirements, you could still receive financing by submitting collateral. Banks define collateral as business or personal property that you put up to guarantee the repayment of a loan.
The bank will match collateral with the value of the loan you want to obtain, such as a home, office, shop or car.