Preparing Your Information Pack Before Applying for a Loan
When applying for a business loan, the application process may feel cumbersome and time consuming, but having all documentation prepared will significantly speed up the application process and avoid delays and further information requests. One of the key value adds from a finance broker, is having a professional that can assist you with this process, saving you time and money. The documents requested can be sorted into three different succinct groups;
- Information to ascertain who you are and the existence of your corporation.
- Financial information that shows you and your company’s current financial standing and the value of the company’s assets.
- Information about the company’s future prospects.
The following list summarises the documents most commonly requested by banks or lenders.
- Identification documents – All lenders require a certified copy of your passport or driver’s license. You may also be asked to supply corporate identification documents such as company registration papers or partnership agreements depending on your corporate structure.
- Financial statements – Lenders will want to see your company’s financial history including its earnings growth, borrowings and the company’s current financial position. Audited or accountant prepared, the financial statements should include current and historical cash flows, income statements and balance sheets. Online accounting software such as Xero and MYOB enable you to allow lenders to access your financials online, reducing the amount of paperwork necessary.
- Proof of income – in the form of recent tax return and ATO Notice of Assessment for both the business and the owners / directors of the business.
- Bank statements – Trading account, loan account and personal account showing current savings, loans and credit card debt.
- Proof of ownership – of any collateral you plan to post such as property or inventory.
- Business plan – with future cash flow projections for Start-ups and new businesses
- Copies of any large contracts that will substantially impact future cash flows.
The team at Grow Capital will be happy to assist you in collecting the materials necessary to prepare for a loan application. We have access to a number of innovative and competitive solutions, so contact one of our advisors today.