18 Business Loan Requirements
7 – Entity Type – Business Licenses and Permits
One of the things a lender with certainly wants to see is your business license. Now, in some cases, you may not be required to having special licensing. However certain states do require you to procure permits and /or licenses before you are able to operate your business. Along the same lines, the lender will also want to see proof of ownership.
Whether or not you are required to have a business license again will depend on the state, as well as on things such as the size of your company, type of business, any zoning restrictions, and so forth. It is extremely important that you check with your local government to determine what type, if any, permits/licenses you will need. In some instances, operating without these could result in penalties and heavy fines.
Another thing you may want to have and thus supply to your lender is an employer identification number (EIN). This is essentially a social security number but assigned to a business by the IRS. To that end, it is largely used for tax purposes. And while you do not necessarily need one to apply for a business loan, if you do have one be sure to provide that information. Receiving an EIN for your company is free and fairly easy to do.
You will definitely need to apply for one if your company falls under any of the following categories:
– You have employees
– Yours is a multi-member LLC
– You wish to be taxed as a partnership or corp.
At First Union, we can certainly help with any and all details when it comes to filling out a loan application and consequently, what you will need to complete this packet. With a streamlined process, we make it fast and easy to get the funding you need—sometimes in as little as two business days. Call today and find out what we can do for you!
You’re reading Part 7 in our 18 part series – 18 Business Loan Requirements
18 Business Loan Requirements 15 - Business Credit Score Different from a personal credit score, your business credit score is focused on precisely what—your business. This means it takes into account your timelines as far as payments to creditors and suppliers....
18 Business Loan Requirements 14 - Loan Amount So you have decided that you need a business loan, now you need to figure out the total amount you want to try and procure. With typical banks, generally, they like to deal with larger amounts. They have more...
18 Business Loan Requirements 13 - Loan Purpose Why are you trying to get a business loan? This is a pretty basic question and one the lender is probably going to want to be documented- particularly if you are going the more traditional lending route. Some companies...