Running a business is hard work, but others would assume otherwise. Most business owners resort to taking out huge business loans to keep their business alive, which is understandable. If you’re planning to apply for a business loan from one of the best banks in the country, it is not an easy task.
These banks offer the best deals when it comes to business loans, but they have high standards when it comes to the businesses and people they’re lending money to. Here are some of the things that they look at when it comes to their business loans
Personal credit score
They look at the business owner’s credit score. They prefer a FICO score that is above 700.
Business age
The business should be a minimum of six months old, but most of these banks prefer the business age of at least two years.
Business Revenue
The annual business net income should be a minimum of $100,000, and the business should be profitable.
Apart from these, you also need to make sure you have all the paper works prepared for a business loan application. Here are some of the additional documents you will need.
- Business loan application form
- Personal resume for people who own 20% and above of the business
- Business plan
- Tax returns – both personal and business
- Financial statements
- Bank statements
- Purpose of loan
- Schedule of Debts
- Collateral statement
Legal business documents such as licenses, business registration, articles of incorporation, and other pertinent business documents.
These are just basic business loan requirements. Most banks will ask for additional documents, and some may stick with the essential reports. You might as well prepare all the materials you have, just in case the banker that you’re talking to asks for additional paper works.
Since we’ve already mentioned the phrase “the best banks,” below, you’ll find a list of the top five best banks when it comes to small business loans.
- Wells Fargo
- JPMorgan Chase
- Live Oak Bank
- Celtic Bank
- TD Bank
I do hope this article helps you on your quest to qualify for the best loan possible for your company. Good luck with your business.