Small Business Loan Application Checklist: Everything to Have Ready

Business basics every funder asks for

Expect to provide your legal business name, EIN, entity type, address, start date, industry and ownership details. Have these ready and consistent across every document.

Start with the identity of the business. Funders match what you write on the application against your bank statements and tax records, so small differences cause questions.

• Legal business name and any DBA name
• EIN and entity type (LLC, S corp, sole proprietor and so on)
• Business address and how long you have operated there
• Date the business started
• Industry and a one-sentence description of what you sell
• Names, ownership percentages and contact details of every owner

If your records use a different name than your application, fix the mismatch before you submit. Our guide on business entities can help if you are unsure how yours is classified.

Financial documents to collect

Bank statements, tax returns and basic financial statements are the core of most files. The exact list depends on the product and amount you are seeking.

Different products need different depth. Quick working capital often relies mainly on recent bank statements. Larger term loans and SBA loans usually need more.

• Business bank statements. Typically the last three months, all pages, all accounts you use for deposits.
• Business tax returns. Often the last one to three years for larger loans.
• Personal tax returns for owners, when the funder wants to see owner income.
• Profit and loss statement and balance sheet. Current year to date and prior year.
• Debt schedule. A list of every current loan or advance with balance, payment and end date.
• Accounts receivable and payable aging if invoices drive your cash flow.

For a plain-language list, see documents needed for small business financing.

Legal and ownership paperwork

Licenses, formation documents, leases and ID show that the business is real and who controls it. SBA and equipment deals ask for more of these than fast working capital.

Keep digital copies of these in one folder:

• Articles of organization or incorporation
• Operating agreement or bylaws, if you have a partner
• Business licenses and professional certifications
• Lease or proof of ownership of your location
• Government photo ID for each owner
• Voided check or bank letter for the deposit account
• Equipment quote or invoice, if the money is for a purchase

If a loan is secured, also be ready to describe collateral. Our post on collateral explains how funders view it.

Know your numbers before you apply

Be able to state your monthly revenue, existing debt payments, the amount you need and what it will produce. Funders and your own planning both depend on those figures.

Write down five numbers before you start any application:

1. Average monthly deposits over the last three to six months
2. Total monthly payments on current debt
3. The exact amount you want to borrow
4. What the money will buy or fund
5. The extra monthly profit or revenue it should produce

The last two are what separate a good decision from a hopeful one. Here is an illustrative example. You want $40,000 for new equipment that adds $6,000 a month in sales at a 35 percent margin, which is $2,100 in profit. If the total cost of the financing works out to about $1,800 a month, the margin is thin. You might borrow less or negotiate terms.

Run the math with our post on how much funding your business can afford.

Check credit and clean up red flags

Review your personal credit report, and your business credit report if you have one, before applying. Fix errors and pay down obvious problems first.

You can get free reports from the three major bureaus at AnnualCreditReport.com. Look for accounts that are not yours, wrong balances and old items that should have dropped off.

Also check your bank statements for the things funders notice: frequent overdrafts, returned payments and large unexplained transfers. Explain any one-time event in a short note rather than hoping nobody asks.

Understand that different applications affect credit differently. Some use a hard inquiry. ROI Funder uses a soft credit pull to apply, so applying does not affect your score. Learn more about hard inquiries before you apply anywhere else.

Mistakes that slow an application down

Missing pages, old statements, mismatched names and unclear use of funds are the most common causes of delay. Review the file once more before submitting.

• Partial statements. Upload every page, including blank or summary pages.
• Outdated documents. Use the most recent months available.
• Applying for the wrong product. A seasonal cash gap fits a line of credit better than a long term loan.
• Hiding existing debt. Funders see it in your statements, and omission hurts trust.
• Vague purpose. Say specifically what the funds are for.
• Submitting many applications at once. Multiple hard pulls can lower your score.

Our loan-ready guide goes deeper on preparing your business.

What a complete file looks like at ROI Funder

At ROI Funder a complete file is the online application plus three months of business bank statements. Complete, approved files can receive funds the same business day.

The application takes a few minutes, uses a soft credit pull and carries no obligation to accept an offer. ROI Funder looks for 500+ FICO, 6+ months in business and $20,000+ in monthly revenue, and matches each file to the funders in our network that fit it.

If you want a larger loan, such as an SBA loan, expect to gather more from the list above and to wait longer. Faster products like working capital and term loans rely on fewer documents. When you are ready, you can start your application.