18 Business Loan Requirements
6 – Personal and Business Tax Returns
Almost always when applying for a short-term business loan, merchant cash advance, bridge loan, or equipment loan, you will be asked to supply your tax returns. This is yet another record of how your business has performed, and generally, a lender will require anywhere from 2-3 years’ worth of returns.
Most often, you’ll be asked for both personal and business. If you are a pass-through entity such as an S corp or sole proprietorship, the personal tax returns will most definitely be necessary, as these will show the lender where you stood the previous year as far as your company’s losses/profits. And with a corporation, the financial institution will require your business returns. Again, they are looking to see how you did as far as revenue, profits, expenses and so forth.
The best thing you can do prior to applying for any sort of loan product for your business is to ensure that you have these records on hand and ready to submit. It is highly unlikely that a lender will okay a loan without first seeing your personal/business tax returns, so to be on the safe side, pull up your past three years’ worth.
At first Union, our job is to find you the right funding program and do so in the most streamlined manner possible. This is why our application process is easier than most, and some clients even get funding within as little as two business days. A dedicated consultant will be on hand to work with you, answer your questions and help you to prepare the optimal loan application. You won’t be waiting months or even weeks for your money—we understand that business works fast, and the cash needs to be there ASAP. Call today to see how we can help your company!
You’re reading Part 6 in our 18 part series – 18 Business Loan Requirements