So, you finally decide to apply for a business loan. You’re in dire need of funds to startup your small business and are hoping to get approved thereafter. This is all done with great intentions, but such approval would need a certain amount of preparation, more specifically, the pre-requisite documents. No need to look further, as we had listed a few important ones for you to prepare. Some may vary depending on your chosen lender, so some requirements may be too much than the usual, however, it is always better to have extra documents ready for submission, rather than lack of it thereof:
1.Your background information.
It’s just natural for a lender to want to know more about the person applying for the loan. Let’s just think of it as their own safety measure, as some would really go out of their way to take advantage of careless lenders, and that is something that both major banks and lending establishments would want to avoid. They would very much ask for:
*Any prior names you may have used
*Previous addresses
*Educational and business background
In short, information similar to what you’d fill out on a job application.
2. Your business plan.
What is your business? What are you going to sell? What services are you going to offer? These are details that they would like to know of, and they would be able to see an outline of that through your business plan. If you want to borrow money, you’ll need to show a lender a business plan, especially, if you’re applying for a big amount. Even if you’re asking for a small amount, submitting a business plan implicates that you are sincere and serious about your intention to open up a business.
3. Your financial and bank statements.
*Basically, lenders require monthly or quarterly financial projections for the first year, then quarterly and/or yearly projections for the next four years.
*Lenders would require your bank statements, in order to confirm if it supports the claims you made in your financial statements and projections.
4. Documentation of collateral.
Collateral is a business or personal property you’re willing to put up, just in case you wouldn’t be able to deliver your part of the deal. You would be required to submit documents showing you indeed own the assets/items/properties up for grabs.
5. Other miscellaneous contracts and legal documents.
Specifically, they are the:
*Business licenses and registration
*Articles of incorporation
*Leases for commercial real estate or business equipment
*Franchise agreements
*Contracts with third parties such as clients or suppliers
Among other things…
After learning the pre-requisites, you may already want to jumpstart your business venture. Go for a trusted name that offers only the best service possible. With that, Cebuana Lhuillier’s Lucky Loan is definitely your top choice. It is a multi-purpose loan offered to registered entities such as tricycle operators, credit cooperatives and other groups, as well as SMEs such as restaurant and mini groceries, among other businesses. Our network of more than 2,200 Cebuana Lhuillier branches and online presence give customers unlimited access and utter convenience in applying for a loan. Our five-point application to disbursement process ensures services are delivered on time. So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.
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