Aug 15 2009
Sample of Financial Related Writing/SBA
This is a writing sample I was asked to complete for a client in the financial services industry.
Documents Needed For a Small Business Loan
By Mrs. Killeen M. Gonzalez
Applying for a small business loan can be a lengthy and complicated process that requires the loan applicant to produce a multitude of documents. Fortunately, there are organizations that can provide the loan applicant with assistance in preparing the loan application.
These organizations can range from independent, unbiased web sites such as Loan.com and Finweb.com to government entities such as; the Small Business Association (1-800-U-ASK-SBA), SCORE (1-800-634-0245) and the U.S. Department of Commerce Minority Business Development Agency (1-888-324-1551).
Regardless of whether you are applying for a loan through the government or a private lender, there are some standard documents that you can prepare in advance of the loan application. These include; personal background documents, business documents, and financial documents.
First, in regards to personal background documents you will want to assemble a list of your previous addresses, previous names used, criminal history if any, personal credit history, educational background, business experience and personal financial information
(1 year of bank statements).
Second, when it comes to business documents you will want to have available your business plan, marketing plan, business license and registration, business tax identification number, articles of incorporation, franchise agreements, commercial leases, copies of all 3rd party contracts, list of business creditors, list of business debt, list of suppliers, list of assets you have as well as assets you may still need to purchase, profiles on all members of the management team, details on why you need the loan as well as details on how you intend to apply the loan if approved.
Third, and perhaps the most important, are the financial documents. You will want to obtain one year’s worth of bank statements, three years worth of income tax returns, signed business balance sheet, detailed one year projection of income and finances, Profit and loss statements current within ninety days of loan application, business income statement, business cash flow sheet, business credit report, itemized list of accounts payable, itemized list of accounts receivable, list of aging, and an itemized list of business accounts in collections. If you intend to use the loan monies to purchase a pre-existing business, there will be additional documents needed such as the proposed bill of sale inclusive of all terms as well as an itemized list containing the current value of all furniture, fixtures, inventory, machinery and accounts to be conveyed with the sale.
In summary, applying for a small business loan can be a daunting task made easier with both professional assistance and advance preparation of some standard documents.
Though this article attempted to discuss some of the documents needed, it should in no way be considered an exhaustive list of what loan seekers will need during the application process. Unbiased and independent organizations such as Loan.com, Finweb.com or others can provide loan seekers with invaluable information including document checklists. If you need additional information on applying for a small business loan contact one of the organizations mentioned above.
