A business loan could help you make your next purchase, manage your cash, or use it for business expansion activities. Supposing you want to apply for a business loan, the following documentation will be required by the private business lenders to help them understand your business financial situation.
Financial Statements
Your financial statement will be proof to show your asset, net worth positions, your liabilities, and your income and expenses that will be used by the lender to determine if you can be in a position to meet your existing and proposed repayments plan. The financial statement should include the balance sheet and your income statement. Additionally, you may be asked to produce your latest tax returns and business activity statement.
Proof Of Individual Income
Private business lenders will also want to know your income details if you are the director or shareholder of the business entity. You will be asked to submit the latest individual tax returns that you filed and an ATO Notice of assessment. Supposing you have other income-generating activity apart from your business, you may also disclose this information to the lender.
Bank Statements
For a lender to know more about your financial position they will require you to provide them with your personal and business income details, savings, and liabilities. This will include loan details, credit cards that you may be having with other lenders. Also, you will be required to provide your latest bank statement. Supposing you have a guarantor for your other loan, their names will be needed.
Identification
Supposing you are going for a top-up loan, you are most likely not to be asked to produce identification documents. If you are a new customer, you will be required to produce identification documents such as a: passport or driving license. The documents needed will depend mostly on the business structure you run. A trust deed or partnership agreement may also be needed if applicable.