Having your documents ready is the simplest way to speed up a business financing decision. Here’s what lenders usually ask for, and what they’re looking for in each.
| Document | What it tells the lender |
|---|---|
| Two years of financial statements | Your revenue, profit and how they’re trending |
| Interim statements for this year | How the business is doing right now |
| Business bank statements (3 to 6 months) | Real cash flow, and how you manage it |
| Corporate tax returns and assessments | That reported income matches what was filed |
| Aged receivables and payables | Who owes you, who you owe, and how long it takes |
| Business registration | That the business exists and who owns it |
| A short plan for the funds | What the money is for and how it pays back |
Financial statements
These are the heart of most applications. Lenders look for steady or growing revenue, a healthy margin and enough cash flow to cover new payments. Statements prepared by an accountant carry more weight than internal ones.
Bank statements
Bank statements show what financial statements can’t: day-to-day cash flow. Frequent overdrafts or returned payments are a warning sign. Consistent deposits and a healthy balance are a strong one.
A short plan for the funds
You don’t need a long business plan. A page that explains what the money is for, what it will cost, and how it will help the business earn more is often enough. It helps the lender match the right product to your need.
If something isn’t perfect
A weak year, a tax balance owing or a dip in revenue doesn’t automatically mean no. Explain it up front. Lenders are far more comfortable with a problem you’ve explained than one they find on their own.
