Documents You Need To Apply for a Business Loan

Securing a small business loan can be a pivotal moment in an entrepreneur’s journey. Whether you’re looking to cover day-to-day expenses, expand operations or boost working capital, getting the financing you need starts with one key step: preparing the right documents. This guide will walk you through the essential paperwork required for different types of business loans, so you can be ready for the application process.

For information about what documents OnDeck requires to apply, please visit our FAQs.

What documents are required to apply for a business term loan?

Business term loans are one of the most common financing options for small business owners. The documents you need to apply typically include personal, business and financial information. The specific documents, however, vary by lender. Some lenders require more documentation, while others require less.

Here’s a list of what you may need to prepare for your business loan application.

1. Personal Information

While a business loan focuses on your company, lenders often consider your personal financial history to assess creditworthiness. Key required documents include:

Government-issued ID. A valid state ID, driver’s license, passport or Social Security number to confirm your identity.

Personal credit score. Lenders will run a credit check, so be aware of minimum credit scores and be prepared to share your Social Security number.

Income tax returns. Some lenders may want to see your personal tax returns depending on your business financials or structure.

2. Business Information

Lenders need to verify the legitimacy and history of your business and may run a check of your business credit report. Additionally, be ready to submit the following:

Business registration and licenses. Proof of legal operations, such as your business license or articles of incorporation.

Employer Identification Number (EIN). This is your tax ID number — your business’s equivalent of a Social Security number.

Business plan. This may not be required by every lender, but offering a comprehensive business plan shows your company’s goals, strategy and feasibility can be important — especially for a new business.

3. Financial Information

Proving your business’s financial health is crucial for securing a term loan. Financial documents you should plan to provide include:

Bank statements. Typically, lenders request the last 6 – 12 months of business bank statements. Some lenders may require fewer.

Tax returns. Personal and business tax returns for the past 2 – 3 years show consistency in revenue.

Profit and loss statements and balance sheets. Up-to-date documentation that reflects your business’s performance.

Revenue projections. For startups and newer businesses, lenders may ask for future financial projections or earnings forecasts.

What documents are required to apply for a business line of credit?

A business line of credit provides flexibility, allowing you to borrow up to a certain limit repeatedly as long as you repay what you owe. These might include:

• Personal and business tax returns to assess revenue consistency.
• Bank account activity showing cash flow trends over 3 – 12 months.
• Accounts receivable and accounts payable aging reports.
• Proof of collateral (if applicable).

The documents required for this type of financing are similar to a term loan, but there’s often greater emphasis on current cash flow and operating health. In addition to personal information and financial statements, lenders want to know about invoices awaiting payment and outstanding bills or business debt. They may also want you to define assets they may be used as collateral.

What documents do I need to apply for an SBA loan?

The Small Business Administration (SBA) loan process is more time-consuming than other loans because it involves both the lender and the SBA. Here’s what you’ll often need to provide for these government-backed loans:

SBA-specific forms. This includes Form 1919 (Borrower Information Form) and Form 413 (Personal Financial Statement).

Detailed business plan. Most SBA loans require an in-depth business plan highlighting your market strategy and revenue projections.

Proof of repayment ability. Your lender may ask for a debt schedule, which outlines existing liabilities and repayment obligations.

Resumes for key individuals. If relevant, SBA lenders value understanding the experience and qualifications of business owners.

Collateral documentation. For larger loan amounts, the SBA may require a detailed list of assets to secure the loan.

What are the eligibility requirements for business financing?

Before preparing your loan documents, make sure you meet these common eligibility requirements:

Business age. Most lenders prefer a minimum of one to two years of operating history. Startups may need additional documentation to qualify.

Revenue requirements. Lenders often set minimum annual revenue thresholds, though they vary by lender and loan type.

Credit score. While there’s no universal minimum, a good score (often 650+) improves your chances.

Industry type. Certain industries may have restrictions or additional requirements.

How do I apply for a business loan or line of credit?

Applying for a loan or line of credit shouldn’t feel overwhelming if you break it into these manageable steps:

Research your options. Choose the type of loan and lender that aligns with your business’s needs.

Organize your documents. Use the lists above to ensure you have all the required paperwork ready.

Submit your application. Most lenders offer online or in-person application options for convenience.

Follow up promptly. Be prepared to provide any additional information or clarification.

Review the terms. If approved, carefully review the loan agreement before signing.

Will applying for business funding affect my credit score?

Yes, but the impact varies, depending on the lender and the type of credit pull involved:

Soft credit check. A soft credit check for a business loan typically involves a lender conducting a soft credit check of your personal credit history. This doesn’t impact your score and is often used for initial pre-approvals.

Hard credit check. Once you formally apply for a loan, lenders conduct a deeper review, which can cause a temporary dip in your credit score.

However, as long as you repay your loan on time, the positive impact of building a solid credit history often outweighs any initial impact.

The Bottom Line

Being prepared is the first step toward securing the business funding you need to grow and thrive. By organizing your documents in advance and understanding lender requirements, you can streamline the process and increase your approval chances.