{"id":5128,"date":"2016-04-04T10:47:57","date_gmt":"2016-04-04T15:47:57","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/applying-for-a-loan-financial-documents-to-give-your-lender.html"},"modified":"2026-05-15T08:58:00","modified_gmt":"2026-05-15T13:58:00","slug":"applying-for-a-loan-financial-documents-to-give-your-lender","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/applying-for-a-loan-financial-documents-to-give-your-lender.html","title":{"rendered":"Applying for a Loan: Financial Documents to Give Your Lender"},"content":{"rendered":"\n
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Applying for a Loan: Financial Documents to Give Your Lender<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Small business loans cover startup costs, equipment leases or purchases, and operational expenses. To qualify, business owners must put together their financial history, including tax returns and financial statements.<\/p>\n\n <\/div>\n\n\n\n

You are ready to start the new business<\/span> of your dreams. You need the capital to pay the initial\u00a0startup<\/span> costs<\/a>. You want to apply for a small <\/span>business<\/span> loan<\/span>.<\/p>\n

Applying for a small <\/span>business<\/span> loan<\/span> can be intimidating, especially when looking at interest rates<\/span> as a borrower<\/span>. If small business<\/span> owners<\/span> meet with lenders<\/span> prepared with the proper\u00a0financial documents<\/a>, they are in a better position for approval. It may even open the door to more financing options.<\/p>\n

Financing Options and Types of Business Loans<\/span><\/h2>\n

A startup<\/span>\u2019s most common financing option is a traditional bank loan or a business line of credit<\/span>. These banks or credit unions<\/span> look at your credit history and business needs. A good credit score<\/span> and good credit history are vital for these institutions. The higher your creditworthiness, the lower your interest rate<\/span> or downpayment.<\/p>\n

New or existing businesses sometimes can\u2019t qualify for these loans because they need to meet eligibility requirements, like a certain credit score<\/span> or annual revenue. That\u2019s when alternative financing options come into play.<\/p>\n

Online <\/span>lenders<\/span> can then be an option for a small business<\/span> owner<\/span>. Just because the business is online does not mean you do not have to submit financial documents or have a virtual meeting.<\/p>\n

The\u00a0U.S. <\/span>Small Business<\/span> Administration<\/span> (SBA<\/span>)<\/a>\u00a0offers guarantees to lenders<\/span> for companies that cannot qualify for a standard loan. These SBA<\/span> loans<\/span> are for businesses that are higher risk borrowers<\/span>.\u00a0An SBA<\/span> 7(a) loan<\/a>\u00a0is the most common loan for SBA<\/span> lenders<\/span>.<\/p>\n

Another option is a business credit card<\/span>, but the interest rates<\/span> are typically much higher than small <\/span>business<\/span> loans<\/span> and depend on your credit score<\/span>. There is an option for a merchant cash advance, but be careful. These are offers that get paid back by taking a future part of your credit card<\/span> sales every business day.<\/p>\n

If you can\u2019t meet any qualifying small business<\/span> financing options as a business, your last resort would be to take out a personal loan. Make sure you have exhausted all other avenues first. You must make the monthly repayments<\/span>, or you could lose personal assets like your house in default.<\/p>\n

Gather Your Financial Documents<\/h2>\n

Here\u2019s a list of some important financial documents you should have readily available before starting a business loan<\/span> application<\/span>, regardless of the funding options or loan amount<\/span> you seek.<\/p>\n