If I get turned down for a loan, will it make it more difficult to get funding in the future?
Being turned down for a small business loan can be a learning experience. Borrowers have an opportunity to review the reason(s) for the decision. Lenders use the 5 C’s: character, capacity, capital, collateral and condition to evaluate the lending capabilities of potential borrowers. Encountering challenges on your journey does not close the door to your future business success.
What documentation do you need for a business loan?
Many lenders will ask to see a business plan with source and use of funding and collateral. A personal financial statement and guarantor background history should also be submitted.
You’ll need to provide two years of personal and business tax returns, a profit and loss statement, balance sheet and operating agreement.
Answers provided by Alonzo Shaw, Assistant Vice President, Business Development Officer at Simmons Bank. He can be reached at 314-227-6368 or alonzo.shaw@simmonsbank.com. The views in this article are those of Alonzo Shaw’s individually and do not reflect those of Simmons Bank.