What Documents Do I Need to Apply for a Small Business Loan?

You've got a dream. Maybe it's expanding your food truck empire, launching that boutique you've always wanted, or scaling your solar startup into a billion dollar company. But dreams alone aren’t enough - they need fuel, usually in the form of cold, hard cash. Without an angel investor or wealthy network, the option that most owners turn to is a small business loan through a big bank.

But here's the thing: applying for a small business loan isn't as simple as walking into a bank and asking for money. Lenders want to know you're a safe bet. And that means documentation - lots of it.

What Documents Will Lenders Typically Require?

Let's break down the paperwork you'll need to have ready to prove that your business isn’t pie in the sky. Things are about to get intimate so saddle up. In order to assess your loan worthiness, lenders will typically ask for:

• Your business license

• Articles of incorporation or organization

• A detailed business plan

• Business tax returns for the past 2-3 years

• Your business's financial statements (income statement, balance sheet, cash flow statement)

But the fun doesn’t stop there. Lenders will also want to look at your personal finances including:

• Personal tax returns for the past 2-3 years

• Personal credit report

• Bank statements

• Proof of income

• A detailed list of personal assets and liabilities

Depending on your financial situation, you may be asked to put up collateral against the loan which could include a property deed or title to a vehicle. This kind of documentation can usually be collected by your bookkeeper or accountant and prepared in advance.

But the fun doesn’t stop once those documents are collected. After you submit everything, your lender will begin the process of approval which can take weeks or, if you are trying to secure an SBA loan from the Small Business Administration, months.

A Modern Funding Alternative: Investment Crowdfunding

Not sure if you’ll qualify for a traditional loan process or want to skip all the hoops and lag-time? Until recently there weren’t any options but today, investment crowdfunding is changing the game for small businesses. Platforms like Honeycomb Credit offer a revolutionary approach to business funding that allows you to borrow from your most enthusiastic customers.

With Honeycomb Credit, you can:

• Launch a funding campaign where your customers become investors

• Start raising funds with investments as low as $100

• Build community support while securing needed capital

• Avoid the predatory terms of traditional alternative lending

• Create a funding model that celebrates your local community

The real secret to a successful loan application is one word - preparation

Applying for a small business loan isn't about having perfect financials. It's about telling a compelling story of your business's potential. Your documentation is your narrative - make it strong, clear, and convincing.

The Bottom Line

Securing a small business loan takes work. But with the right documents, preparation, and innovative funding options like investment crowdfunding, you're not just asking for money - you're building a support network that believes in your vision.

Interested in learning more about community-powered funding? Check out Honeycomb Credit and discover how your customers can become your biggest investors by filling out the form below!