Preparing a loan application can be a long and tedious process for just about any kind of small business, depending on which kind of a loan you’re applying for. Some loans may take several weeks, and others may require as much as several months before you finally have the money in your hands to address your business needs. While the requirements for loan applications vary from lender to lender, there are some forms of universal documentation which you should have ready, in order to expedite the process of getting your loan approved and funding in your hands.

Alternative Lenders

A loan application with an alternative lender is generally the quickest way to acquire financing these days, but these loans will also usually carry higher interest rates because there’s greater risk involved to the lender. Necessary documentation for most alternative lending products is usually fairly limited, and the lenders will often provide the technology you need to connect your bank account to their institution. That’s one of the reasons why far less documentation is necessary.

Conventional Loan Applications

There is far more documentation required from a conventional lender than there is from an alternative lender. This is mandated because conventional lenders like banks are subject to much greater restriction from federal organizations than alternative lenders are. That’s why you have to provide a good business plan, business statements such as balance sheets, income statements, liability statements, profit and loss statements, and generally some tax documents as well. It will also be necessary for you to have a strong business credit score, and usually, your small business must have been in operation for several years, for you to have a reasonable chance of being approved.

Applying for a business loan? 

If your small business is in need of funding for some reason, we may be able to help you. Contact us at Simplicity Capital Finance, so our specialists can determine if you might be eligible for some type of funding.