Which Documents are Required to Apply for a Business Loan?

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12 August 2020 Advice

When you are applying for a business loan, the lender will want to see various documents so that they can get an overview of how your business is running. In this blog, we outline the different documents that you might be required to present when you are submitting an application for a business loan.

Will the same documents always be required?

It is always best to check with the lender to understand the specific documents that they require. These will vary between lenders and will depend on the kind of finance you are applying for, as well as whether you are an existing client of the bank or not.

However, even before you get in touch with lenders, it is worth getting the paperwork together in anticipation of your meeting. Needless to say, they will look favourably on an applicant that is organised!

The Documents Required Loan Lending Applications:

Identification documents for all individuals involved (i.e. driving licence, passport and a recent utility bill).
The last 3 months of business bank statements.
The last 3 months of personal bank statements.
The last 3 years of accounts as prepared by an accountant.
The last 3 years of personal tax returns.
A business plan showing how the funds are going to be used for at least 3 years, or the period of the loan, whichever is shorter. This will ideally be a three-way forecast including cash flow, profit and loss, and a balance sheet.
A summary of the assets held in the business (i.e. business premises value and details of lending already secured by it) in case the bank requires security.
A summary of assets held privately (i.e. equity in your house, details of other property owned etc).
A detailed listing of the shareholders in the company (if applicable).

As I say, this is a very comprehensive list, but if you are looking to impress the lender and really demonstrate that you are a business that is going places, I wouldn’t hesitate to have all of the above in place before you meet with a lender.

As always, if you want any help with the above or just need to chat ideas through, please do get in touch.
Daniel Routcliffe FCA CTA

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Dan Routcliffe

Email: dan@sidaways.co.uk

Tel: 01392 360008

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