The Loan Package

A real funding application is a package: two years of business and personal tax returns, year-to-date profit and loss and balance sheet, bank statements, a debt schedule, and a one-page statement of what the money does and how it pays itself back.

Why it matters

Underwriters approve packages, not vibes. The businesses that get funded at good rates are the ones whose paperwork answers the five questions before they are asked.

Key facts

• A debt schedule - every existing obligation, payment, and balance - is the document most applicants do not have and every lender asks for.
• The use-of-funds statement should show the return: what the capital buys, what it earns or saves, and the coverage of the new payment.
• SBA loans add SBA Form 1919 and a personal financial statement (Form 413) for each 20%+ owner.
• Clean, consistent books (even simple accrual statements from basic software) materially change offered rates.

In practice

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