What you will need for a small business loan

How you present yourself can often times mean the difference between getting the small business loan you need and going home empty handed. Small business owners who take the time to make sure they have the right loan documentation, and present themselves in the best possible way, are the most likely to get the funding they are seeking. Experts agree that whether you are seeking a small business loan to start a new venture, or improve your existing business, taking the time to polish your business plan, and gather documents to highlight your prior successes, may help make your business a more appealing candidate for a loan. Here is what you need to know about what you will need for a small business loan. Keep in mind that while each financial institution has its own review process, the following documents could emphasize your successes as part of the loan application process:

• Create a paper trail-You want to have a record to documents your business accomplishments. This will provide your lender with valuable insights into your ability to successfully execute your business strategy and accomplish your goals. You want to make sure that this includes loan repayment records. If you have successfully repaid a prior business or personal loan, showing the bank records may inspire confidence in for your lender, in your ability to repay your debts.
• Credit reports-It is important to realize that you should review your credit report to verify there are no errors before meeting with your lender.This includes both your personal and business, credit report, (if you business is existing). Keep in mind that an up-to-date, accurate credit report demonstrates that you care about your credit worthiness.
• Positive cash flow documents-It is important to understand that if you are seeking a loan, for an existing business, providing records that demonstrate a history of positive cash flow can lend significant weight to your perceived ability to cover your business-related costs, and repay your loan. For potential small business owners, who are starting a new business, it may be beneficial to highlight past successes, by providing a record of positive earnings, from a formerly-owned business, or a business you operated in the same industry. You should also keep in mind that providing an accurate, realistic, and thorough picture of how you will achieve positive cash flow in the future is also key, to swaying your lender to look at your confidently.
• Details about industry expertise-For those small business owners looking for loans, they should be aware that it is important to include details showcasing your relevant industry expertise, as well as tangible successes that you accomplished while owning or operating a business, in your chosen field. You should include prior achievements of note. This may include:increased revenue growth, business expansion and securing new projects and/or clients. Keep in mind that your management team is also integral to the success of your business; so highlight their expertise and industry successes, as well. Experienced business lenders understand that they are investing not just in ideas, but in the people who will run the business. A positive track record can boost lender confidence in your business' ability to compete in your market sector. It is important to understand that by carefully tracking and summarizing your achievements, you can bolster the foundation upon which your future business goals are assessed. This is because your accomplishments can serve as a window, into the future performance of your business. When put together with thought and planning, these documents listed above, will illustrate how you are managing for success, and may help strengthen your candidacy for a loan.