Essential Criteria for Securing Business Financing
Congratulations–you’ve led your business to success and are ready to start growing! With the hunger for expansion comes the need for additional financing, but what do you need to get started? Backd is here to help guide you through the process so that you can easily secure funds to grow your business. It’s worth noting that the documentation required could vary from lender to lender, but this checklist will work as a comprehensive guide to ensure that you are always organized to meet any and all requirements when looking to finance your dream.
1. Start with the Basics
Like any official document, you will want to begin with having your basic information organized. This is going to start with your legal name and a personal driver’s license to ensure that you can verify your identity.
Personal driver's license
Business address and phone number
Date your business was established
You may want to follow this information by including your resume so that the assessor of your loan has a clear understanding of who you are and what your credibility is in your line of work.
2. Business Documentation
Next, it’s time to get your paperwork in order.
Your business plan that includes your industry and the size of your business
Business license and permits
Articles of incorporation
Any third-party contracts that you may have
Commercial lease
Business insurance plan
Proof of collateral
3. Your Numbers
This is the nitty-gritty of the application and the part that could bear some of the heaviest weight.
Annual revenue
Net profits
Annual gross sales
Balance Sheet
Income and cash flow
Most recent business bank statements
Accounts payable
Accounts receivable
Payroll records for all employees
4. Tax and Credit Documentation
The last parcel of information that you will want to be within reaching distance during the application process is your tax and credit history.
Business Credit Report
Your Tax ID / Employee Identification Number
Personal tax return
Business tax return
Documentation of any and all balances your business might have tied to it
5. Fully Equipped and Armed for Success
While this information will help guide you through the application process, none of this is absolute. Different lenders may have their own requirements and it is always important to ensure that you thoroughly read through the requirements before submitting your application.
At Backd, we strive to make the process as quick and easy as possible, that’s why completing our application takes as little as 3 minutes with pre-approval in 24 hours. Grow your business when you want to.
