Banks and traditional lending institutions are constrained by governing bodies to observe certain guidelines when approving loans, and these guidelines tend to cause a high rate of disapproval. Even if your application is approved, it may take as much as two months before you actually have the money in hand. By that time, your small business could have drowned because your cash flow has dried up and choked off the lifeblood of your business. To have the best chance of being approved for a bank loan, here are some of the bank business loan requirements you’ll be expected to fulfill.
Bank business loan requirements
Here are some of the bank business loan requirements you’ll be expected to provide when applying for a bank loan. Missing any of these, or submitting documents that are inaccurate or incomplete may be grounds for automatic disapproval.
Business plan – not all banks require this, but it shows how sound your business is and how well-thought-out your path to the future is
Credit – it will be best if your credit score is 660 or above
Cash flow – if you can demonstrate positive cash flow, it will show that your business is fundamentally sound
Collateral – if you have some kind of collateral to offer, your chances of approval will increase
Industry – banks like to know the specific industry you’re in, and what your position is within that industry
Age of your business – it helps a bank to know how long you’ve been operating because that shows stability and success within the field
Documentation – you’ll be expected to provide all kinds of documentation for your bank business loan requirements: tax returns for previous three years, employer identification number, proof of collateral, income statement, balance sheets, personal financial statements, and a copy of the commercial lease on your property.
When you work with Artis Commercial Capital, you won’t have to supply all the same documentation that a bank expects from you. We’d like you to have good credit history, but we can probably still work with you if yours is less than perfect. Contact us today about your business loan, and find out how much easier it will be to meet our expectations than it would be if you worked with a bank.