The need for funding varies from business to business. As an entrepreneur, you might be in the hunt for funding to expand your storefront, invest in merchandise or deal with an emergency scenario that might need immediate funding.
Acquiring funding has become an easier, quicker experience over the years, but the process of applying for a loan, cash advance or any other form of financial help can be streamlined even more when the borrower knows what to expect beforehand.
Funding companies have differences in operation and as such, it is expected that they would differ in their required paperwork. Nonetheless, be they banks and credit unions, agencies in the online lending business such as OnDeck or showrunners in the merchant accounts scene such as First American Merchant; they all share the same goal – to offer funds for your business – and are therefore all interested in similar details.
Below are four main shared interests between funding agencies, that an entrepreneur needs to know before hand to make the funding application process easier for all the parties involved.
- Business details
Information such as business location, address, business owner(s), phone numbers, business license number etc. are a definite requirement for all funding applications.
- The loan or cash advance desired
While most lenders will often be the ones to determine the amount of money you are eligible to get; the application always requires that you state the amount of money desired and why you need the exact amount. The lender will then try to work around your figure and settle on an acceptable loan
- Bank statements
Financial requirements vary from firm to firm, but the common ones include income statements, cash flow (records of accounts receivable and payable), a permanent credit reports and debt balances.
- Your history of loan applications:
Many financial firms will need a brief breakdown of past loan applications with other lenders. The success of your application will then depend in-part on the success of previous requests.
While not party to all types of funding agencies, it is good to keep an eye for the following requirements as well.
- Collateral statement
- Contracts with third parties
- Franchise agreements
- Articles of incorporation
No matter what reason you might have of seeking funds for your business, the application process should not hold you back.