Lenders Scrutinize Business Owner Needing Funds
The you the small business owner has a wealth of enterprises to go to to seek funding for their business. You must have the motivation and drive to seek your resources and apply. You need to know that lending institutions have criteria that you must meet in addition to a lot of documentation that your lender needs to determine your trustworthiness. The following a few of the things that the lender looks through. While lender documentation may differ most want the following to review.
When you meet with your lender, he or she will present some questions that you need to answer correctly such as, but not limited to:
• Why you are applying for the loan
• If you get the money, how are you going to use the funds
• How many employees do you have and who is part of your management
• Do you have any other business debt and who are the lenders
• What equipment do you need for your business and who are you going to go for these purchases
The lenders look into your personal background, your resumes, a business plan for your planned venture, a personal credit report, a business credit report, income tax returns, financial statements, bank statements, and the type of collateral you will offer to the lender.
The lender must make sure that all of your legal documents related to your business are in place, such as but not limited to, business licenses and registrations, DBA forms, articles of incorporation, franchise agreements, commercial leases and third party contracts you may have available.