How to Prepare for a Business Loan: The Checklist That Speeds Up Your Funding

Only 42% of small business financing applicants received the full amount they asked for last year, according to the Federal Reserve. The gap between "approved" and "approved for what you need" usually comes down to preparation. Here is how to show up ready.

Know these five numbers cold

1. Average monthly revenue and bank deposits.
2. Monthly operating expenses.
3. Every current loan, lease and advance payment.
4. The exact amount you need, and what it is for.
5. The payment you can afford in a slow month.

Your document checklist

• Always: recent business bank statements (every page), owner ID, formation and ownership records, and a voided business check.
• Often: profit-and-loss statement, balance sheet, business and personal tax returns and a debt schedule.
• Deal-specific: equipment quotes, invoices, purchase agreements, leases or projections.

Make sure names, ownership percentages and revenue match across every form.

Make your request specific

"Working capital" is a category. "$85,000 for seasonal inventory ordered in September and sold November through January" is a plan. Tie the amount to quotes or invoices, name the repayment source and include a modest cushion, not the largest number a lender might approve.

Fix these before you apply

• Errors on your personal or business credit reports.
• Unexplained deposits, overdrafts or returned payments. Prepare a one-line explanation.
• Outdated entity records, licenses or registered addresses.
• Mixed personal and business spending.

Educational content only, not financial, legal, accounting or tax advice, and not a financing offer. Alta Business Loans is a business funding brokerage, not a direct lender. The lender funding a transaction independently determines eligibility, approval, rates, terms and funding availability. Data cited is current as of the publication date and may change.