Originally written by Adam Parker on Small Business
Applying for a loan may seem daunting once you’ve decided to borrow finance. That’s why it’s always important to have the right business documents prepared before you do so.
Documentation varies depending on what type of lender you’re looking to borrow from. With a business loan from a bank, you are likely to be required to provide more documents to limit risks, such as a business plan or insurance. Other lenders might require less.
Brokers who act as an intermediary between the applicant and the lender offer an online application that further reduces the amount of documentation needed.
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Business bank statements
Business bank statements are an essential document used to verify the income and the outgoings of your company. The statements usually consist of a summary of your transactions which helps determine your spending and income. These are typically produced every month.
Financial accounts
Financial accounts are necessary for the lender to gain a clear insight into the company for the full financial year. They allow lenders to see a greater picture of the company, rather than working solely from bank statements alone.
For example, six months’ worth of