Getting Down To Brass Tacks With Documentation And Credit History
This is usually everybody’s least favorite subject to talk about with small business loans. It’s also one of great importance. You can not skip out on this one.
When it comes to the asset-based loans, you must develop a full business plan. There is no way around this. You have to be on spot.
Ever hear of something call the SWOT plan. This is when you identify your strengths, weakness and threats. With the threats, you must identify short-term and long-term. If something might be a potential threat, list it.
This will give the banks and lenders an overview of what your business is all about. This will also give them an overview for any sort of potential. If they are going to be helping you, banks and lenders want to know what they are dealing with.
Explain in writing where your business is heading. You will need your cash flow statements. Tax returns must be for the last five years. If you have more, provide them.
What about factoring-based loans?
You will only need the accounts-receivable and cash flow documents for the past three months or so. With this type of loan there is not going to be too much detail needed. The detail is still there,;but, it’s not as in-depth as the above one.
When it comes to the credit score, you must have a really good one. I’m not joking here. Without a really good one, your chances of getting approved is going to be reduced. If you are in this fix, do what you can to bring up your rating. This will only serve to help you.