According to business experts, at some point, almost every small business is going to need funding. If you don’t have money set aside, you may need to fill out a small business loan application. This is a form that you would fill out when you are ready to ask for a loan. In this blog, we’ll explain the small business loan application.
Small Business Loan Application Defined
If you plan to start a business or you already own one, you will probably reach a point where you need to raise capital. One of the most common ways of doing this is with a business loan.
To secure a business loan, you’ll have to fill out a small business loan application to provide the lender with information about your business and your finances to help them decide on your loan.
Who Uses Small Business Loan Applications?
Typically, it is the business owner that files a loan application. However, this may vary depending on the business structure. For example, for the 7(a) loan program, the U.S. SBA requires the following to be involved in the business loan application process:
- Sole Proprietorship: sole proprietor
- Partnerships: all general partners & any limited partners owning 20%+
- Corporations: officers & directors, anyone with 20%+ equity
- LLCs: officers, directors, and managing members, anyone with 20%+ equity
- Anyone involved in managing day-to-day operations
- Anyone guaranteeing the loan
Small Business Loan Application Types
When it comes to small business loan applications, there are several different types. First of all, it will either be online or on paper- either way, the information will be the same. It’s important to note that the application may vary depending on the type of small business loan you want to get:
- SBA loan
- Equipment loan
- Bank/commercial small business loan
- Secured/unsecured line of credit
- Secured/unsecured term loan
- Commercial real estate loan
- Merchant cash advance
- Small business auto loan
- Healthcare practice loan
- Accounts receivable financing
Filling Out a Small Business Loan Application
When you’re ready to fill out a small business loan application, you’ll need to have the following information:
- Business name/address
- Owner name/address
- Social security number
- Phone number
- Birthdate
- Business structure
- Business type
- Ownership distribution
- When the business was established
- How many employees
- Whether or not you have an existing account at this institution
You May Also Be Required to Provide Financial Information About Your Business:
- Type of funding you’re requesting
- How much you need
- What do you plan to use the funds for
- Collateral
- Loan guarantors
Financial Statements May Also Be Required:
- Organizational papers
- Profit & Loss statements
- Federal tax returns for businesses and owners
- Balance sheets
- Personal financial statements
You must also be prepared to answer any questions related to the future of your business, as well as your personal management experience and/or business background.
Where to Obtain Small Business Loan Applications
First, you must determine the type of loan you want to pursue and then determine what information you need to apply and draft a business plan and determine how you plan to use the funds. Avoid presenting incomplete financial statements and make sure you take the time to research lenders. When you find a lender, make sure they fit your credit rating and situation. Finally, visit the lender either online or in the office to get an application.
If you need help with your small business loan application, contact WCK Financial We can help you get the funding you need.