Business Loan Requirements

small business loans for restaurants

Small Business Owner's Guide to Understanding Loan Requirements

Why does applying for a small business loan always seem so complicated? Well, it doesn't have to be that way. At First Union, our only focus is to help business owners get the money they need when they need it.

Just fill out our online form today and we'll review your loan application for approval as quickly as possible. Often, a business will get a decision the same day, and then the funds will hit your account within 1 to 2 days. We also have funding experts available to discuss any of the documentation requirements with you from tax returns to credit scores to business financials.

Ready to get started? Here's a list of the top 18 requirements you'll need to have available and links to helpful articles for each topic.

Contracts and Agreements

These can include items such as third-party contracts, vendor/supplier contracts, and agreements as well as real estate contracts you may have executed.

Commercial Lease

A commercial lease lays out the terms of your occupancy when it comes to brick-and-mortar office or warehouse space.

Ownership and Affiliations

This refers to the number of ownership and/or partnerships in which you or any other principals may be involved.

Accounts Aging Reports

Current accounts receivable (A/R or AR) and accounts payable (A/P or AP) aging reports document how well your business collects on payments owed for goods and services.

Disclosure of Other Debt

A Business Debt Schedule should include all current outstanding debts.

Personal and Business Tax Returns

Lenders generally require anywhere from 2-3 years worth of tax returns.

Business Licenses and Permits

These documents involve any state permits and/or licenses needed to operate your business. Along the same lines, the lender will also want to see proof of ownership.

Business Entity Type

There are four principal entity categories: sole proprietorship, partnership, limited liability company (LLC), and corporation.

Industry Impact on Loans

Certain industries tend to be riskier than others.

Personal Credit Score

Your credit score will most likely factor into the interest rate that you receive.

Business Financials

Your income statements should include profit and loss statements, balance sheets, and bank statements.

Proof of Collateral

Collateral includes real estate holdings, your personal home, equipment, vehicles, company inventory, or other items that are at risk in the event that you default on your loan.

Loan Purpose

Lenders need to know what the funds are being used for.

Loan Amount

Take time to calculate the total amount you want to try and procure.

Business Credit Score

This credit score takes into account your timelines as far as payments to creditors and suppliers.

Business Plan

Essentially, the business plan helps spell out your goals and make financial projections.

Time in Business

Some lenders like to see that a company has been in business for a minimum of two years.

Employer Identification Number (EIN)

An Employer Identification Number or EIN, also known as a Federal Tax Identification number is a unique identifier for business identities.

First Union Lending is Here for You

First Union wants to help small businesses thrive and ultimately grow. This is why we do what we do. With short-term loans, merchant cash advances, and equipment financing, among other loan types, we have a solution to fit your specific business needs.

There is no off-the-shelf approach with us. Our representatives will walk you through the process every step of the way. Call 863-825-5626 today and let's get started.