Business loan requirements differ by funding type, so the records worth gathering depend on what the request is for. This post matches records to each funding type on this site, builds an invented debt schedule, and covers the ownership details and the short purpose note that make a request clearer to read.
A table pairs records with funding types, from a seller's quote for equipment to card statements for an advance. An invented debt schedule totals $1,245.15 a month against $48,700 of average deposits. Names, owners and a purpose note round out the file. A partner decides which records it asks for.
Business loan requirements by funding type: which record goes with which request
No single list fits every request. A funding partner may ask for different records depending on whether the money buys a machine, covers a gap or comes as an advance against card sales. The table pairs records with the funding types on this site; a partner may ask for more or fewer.
| Funding type | Records that may be requested |
|---|---|
| Equipment financing | The seller's quote with make, model and price; for a used machine, a bill of sale and serial numbers |
| Term loan | Business tax returns, a recent profit and loss statement, and what the money will pay for |
| Line of credit | Recent business bank statements and, where invoices are outstanding, a list of who owes what |
| Inventory financing | Supplier quotes or purchase orders, and a record of how stock has turned over |
| Working capital loan | Bank statements that show the gap, and the payroll or bill it covers |
| Merchant cash advance | Recent card processing statements and business bank statements |
The request form itself covers only the starting points, such as time in business, annual revenue and the amount sought; the records in the table come later, if a partner asks for them. The how-it-works page follows one request, form first, through a partner's review to the owner's decision.
Documents required for a business loan when debts are already on the books: the debt schedule
A debt schedule lists every loan, lease, line and advance the business already carries, with the balance, the payment and the payments left. It shows what the business already pays each month, the number any new payment is set against.
| Debt | Balance | Monthly payment | Payments left |
|---|---|---|---|
| Work van loan | $21,380 | $733.74 | 34 |
| Equipment lease on a cable puller and benders | $7,425 | $412.50 | 18 |
| Credit line, interest only at 14.3% | $8,300 drawn | $98.91 | Open |
| Total | $1,245.15 |
With those invented figures, the schedule totals $1,245.15 a month. Set against average deposits of $48,700, that is 2.6% of a month's deposits before rent and payroll.
Bank statements show each payment going out, so the schedule and the statements need to match. A debt left off the schedule turns up anyway, and then has to be explained.
Owners, signers and the business's legal name across every record
A request reads cleanly when the same legal name appears on the bank statements, the tax returns, the request form and any quote. A trade name that differs from the legal name is worth noting at the start, with both names given.
A partner may also ask who owns the business and in what shares, and who can sign for it. For a business with more than one owner, having each owner's share at hand saves a round of questions; a partner may ask owners to sign or guarantee, which is a term to read in any offer.
- The legal name and any trade name
- Each owner's name and ownership share
- The person who can sign for the business
- The business's federal tax ID (EIN), where one exists
A short purpose note: what the money buys, what it costs and how it is paid back
A few sentences on the purpose spare a partner from guessing. The note can say what the money pays for, the quote or bill behind the amount, and how the payment fits the business's cash cycle.
Illustration only, an invented note for the electrical contractor above: "The amount is $12,480 for two thermal imaging cameras and a cable fault locator, per the attached dealer quote. The tools are for existing maintenance contracts. Deposits average $48,700 a month, and current debt payments total $1,245.15, as listed in the schedule."
A note like this lays out the facts a partner can use to size the request, without arguing the case. For the funding types themselves, the line of credit and term loan pages work through their own cases. The blog has the other posts.
By Meadowside Credit · Updated
