New business loan requirements

Here are some common requirements for new business loan applications:

Personal Information:

  1. Identification documents (driver's license, passport, state ID)
  2. Proof of citizenship or residency
  3. Social Security number or Individual Taxpayer Identification Number (ITIN)

Business Information:

  1. Business name and address
  2. Business structure (sole proprietorship, partnership, corporation, LLC)
  3. Business registration documents (articles of incorporation, articles of organization, business license)
  4. Business tax ID number (EIN)

Financial Information:

  1. Business financial statements (balance sheet, income statement, cash flow statement)
  2. Personal financial statements (balance sheet, income statement, cash flow statement)
  3. Business tax returns (previous 2-3 years)
  4. Personal tax returns (previous 2-3 years)
  5. Bank statements (previous 3-6 months)

Credit Information:

  1. Personal credit score (FICO or VantageScore)
  2. Business credit score (Dun & Bradstreet, Experian, or Equifax)
  3. Credit reports (personal and business)

Business Plan:

  1. A comprehensive business plan outlining the company's goals, strategies, and financial projections
  2. Market analysis and competitive research
  3. Product or service description and pricing strategy
  4. Management team and organizational structure
  5. Marketing and sales strategy

Collateral:

  1. Assets that can be used as collateral (equipment, inventory, real estate, accounts receivable)
  2. Personal guarantees (if required by the lender)

Other Requirements:

  1. Business insurance (liability, property, workers' compensation)
  2. Proof of business registration with the state and local government
  3. Proof of licenses and permits required by the industry or state
  4. Proof of employee identification and verification (if applicable)
  5. Proof of business bank account and account statements

Additional Requirements for Specific Loan Types:

  1. SBA Loans: Additional requirements may include a personal financial statement, business financial statements, and a business plan.
  2. Line of Credit: Additional requirements may include a business credit score, business financial statements, and a business plan.
  3. Invoice Financing: Additional requirements may include a list of outstanding invoices, a contract with the customer, and a business financial statement.
  4. Equipment Financing: Additional requirements may include a description of the equipment, the purchase price, and the expected useful life of the equipment.

Please note that these requirements may vary depending on the lender, loan type, and industry. It's essential to review the specific requirements for the loan you're applying for and to consult with a financial advisor or business consultant if you're unsure about any of the requirements.