Small Business Loans…How Not To Bungle

In my last post I discussed the types of loan and funding options available. Now I will discuss the essentials of successful loan application for small business funding.

Applying for the commercial credit demands a lot of preparation documentation wise. The thoroughness and accuracy of the documents are absolute musts for successful borrowing, so it pays to prepare them carefully. Some of the must have documents are:

 

• Financial statements: balance sheet, profit and loss statement, and tax returns of the company
• Personal financial statements and tax returns for last three years
• Cash flow estimates on the monthly basis
• Comprehensive business plan
• Precise loan utilization detailing
• Profiles of decision making people i.e. top management

Before actually going to the banks or any other financial institution don’t forget to have your financial documents reviewed by a qualified accountant, certainly in case you require capital funding.

You can avoid all those cumbersome paperwork if you just want working capital funding. In this case you can opt for business cash advance.

The cash advance is to be repaid from the credit card sales that the business does in a specific period, usually through automatic debit. Organizations like Merchantcashdirect provide such cash advance.