Business Loan Application Documentation Guide
Welcome to Lend on Capital’s comprehensive guide for preparing the necessary documentation for your business loan application. As part of the underwriting process, our funding managers may request specific documents to understand better and evaluate your business needs. This guide will streamline your application process by detailing the required documents and providing helpful tips.
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1. Month-To-Date Report
A Month-To-Date Report is a financial document that shows all the transactions and balances in your business operating accounts from the first day of the current month up to the present day. It provides a snapshot of your recent business activity, helping lenders assess your financial status.
Generating the Report:
- Log in to your online banking platform and select the specific account you wish to create the report.
- Set the date parameters in your report tool to cover the period starting from the first day of the current month up to and including today.
- Navigate to the ‘Print’ option in the browser’s menu.
- Change the printer settings to ‘Save as PDF’ or a similar option.
- Initiate the print command. This action will trigger a save dialog for the PDF file.
(Watch a step-by-step guide)
2. Proof of Ownership
Confirming your ownership in the business is crucial. Please provide any of the following documents:
A. EIN Letter (SS-4): An EIN Letter is an official document from the IRS confirming your Employer Identification Number, a unique number assigned to your business for tax purposes. It establishes your business’s identity for taxation.
B. Schedule K-1: Schedule K-1 is a tax document used in partnerships and S-corporations. It shows your share of the business’s income, deductions, and credits, and is used to demonstrate your stake and financial involvement in the company.
C. Schedule C: Schedule C is a tax form used by sole proprietors. It details the profit or loss of your business, reflecting your sole proprietorship’s financial health and activity.
D. Schedule G: Schedule G is a tax document used in certain situations to report income distributions or allocations to various parties. It’s applicable in scenarios like trusts or estate distributions.
