Does anyone know what exactly i need in paperwork to start a business and go for a business loan?

Question

i want to start my business but need to know what proof i need in paperwork to be granted a business loan? thanks in advance

Answer 1

The business of lending is a dense one and should be researched properly. To get started, I suggest contacting the Small Business Administration (SBA). Entrepreneur also offers a great site dedicated to money & finance – see below for both.

Research, research, research – this cannot be stressed enough. Read as much as you can about the process. Here are some book titles that are relevant:

* How to Get a Small Business Loan: A Banker Shows You Exactly What to Do to Get a Loan (Small Business Series, No 1) by Bryan E. Milling
* The SBA Loan Book: Get A Small Business Loan--even With Poor Credit, Weak Collateral, And No Experience by Charles H. Green
* The Insider's Guide to Small Business Loans by Dan M. Koehler

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 2

Hi T,

There are several ways to get financing for a new business. Probably the most widely used option for obtaining start up capital is for the borrower to collateralize the equity in their personal residence or any other type of real estate that they own.

The terms are always more favorable to finance your business with real property. The interest rate is lower, you can have interest only, fixed and multi-term repayment options. Once your business is in effect for two years (from the date you filed your articles of incorporation with the state), you will be able to "re-brand" your loan directly into the business's name.

Now,

If you do not own any real estate, you will have to get real creative to get funding for your business. The SBA may be able to help you, but the SBA only guarantees that a certain percentage of your loan will be repaid to your bank should you default on your loan. What that means to you is that you will still have to qualify for the loan without the revenue that you expect to generate from your business. That is of course unless this is an aquisition purchase of a business - meaning that you are simply taking over another persons business. In that case, you can count the revenue from the business on the application for the loan.

Here is the bottom line. You have to call a small business banker at your local bank. Once you answer some basic questions, they will tell you right away what your likelyhood of financing is. Also, if the banker shuts you down right away, it doesn't mean he doesn't like you, or that he doesn't think your business will be profitable. He just knows the underwriting procedures so well that he can tell you right away if the SBA will help fund you.

As always, you can call me at my branch to talk it over.

813-681-2866

Have this SBA form filled out and ready to discuss:

http://www.sba.gov/sbaforms/sba413.pdf

Good Luck!

Frank

Answer 3

Go online to a lenders website and there they will tell you what documentation you will need. Once you have that documentation you can submit your application all at once. Check a few out though before making any decision as it is quite competitive at the moment for business loans.

Answer 4

1. Business permit
2. Evidence of operating business for over a year
3. business address
4. Cash flow repor
5. Fiscal year-end report

Answer 5

What you need is COLLATERAL! (your house?) If you have that, the bank will be glad to help you with the paperwork. If you don't have it, both the bank and the Small Business Administration will tell you to go play in the traffic.

Answer 6

Check this web site, it has ALL the information you could ever want about starting or expanding a business and Good Luck>
http://www.sba.gov/