4. Personal Credit Report
Banks and other lenders in Certified Business Loans do not have to get this document from you; they would prefer sourcing the report from themselves. They stand higher chances of getting authentic reports from the credit bureau than you since some people might fabricate such document. The reason it is advisable you get such a document for yourself is for prior preparation. If you get a negative report, you get the chance to sort it out before making your application. Negative reports drop your chances of loan awards to almost nil.
5. Income Tax Returns
The government is big on enforcing tax laws and uses credit companies to do that. Banks demand all small business loan applicants to issue them with both personal and business income tax returns dating a few years back. Where the business is just beginning, personal tax returns are given more grave consideration.
Depending on the risk you may ask a bank to take on your business, your bank might or might not require collateral from you. However, there are a few creditors who are big on loan security and will not award any loans minus security.
7. Legal Documents
Before issuing any loans, part of any banks due diligence process includes collecting from you certain legal documents namely:
• Articles of Incorporation
• Business agreements
• Copies of pacts the business might have with any third parties
• Business licenses and registration documents