When you need commercial financing for your business , you need to understand what is involved. Here is a commercial loan documentation checklist.. For more information, visit https://www.onlinecheck.com/blog/business-loans/commercial-loan-documentation-checklist/at

1. www.yourcompany.com
© 2017 The Worthy PowerPoint Presentation.
1
AN ULTIMATE GUIDE ON
COMMERCIAL LOAN
DOCUMENTATION CHECKLIST
www.onlinecheck.com

2. www.yourcompany.com
© 2017 The Worthy PowerPoint Presentation.
2
DOCUMENTATION CHECKLIST
Getting working capital for operational expenses can make or break your small
business. If you require funding to fund your commercial projects and in search of
business loans with little paperwork process, its best to go over the commercial loan
checklist.
The process of getting commercial
financing may seem intimidating, but
the process is easy if you’ve the
documentation ready. Lenders actually
willing to assist small businesses
secure the capital they need. They only
afraid of working with borrower who
can’t repay them or have bad credit
histories.
The good news is that most of them
have lenient qualification
requirements—and, follow stack of
business loan documentation through
which they assess borrower’s
credibility. If you get yourself fully
prepared before applying for loans,
you’ll have a better chance of
qualifying along with easy loan
application process.
www.onlinecheck.com

3. www.yourcompany.com
© 2017 The Worthy PowerPoint Presentation.
3
THE BASICS
Personal Credit
Score History
When applying for a business loan, your personal credit
score really matters in a lender’s decision to approve
you for funds. Personal credit history acts as a solid
indicator of your past performance of well you were able
to manage your business’s finances. Lenders use this
assessment to objectively assess your ability to handle
the cash you need for commercial expenses.
Business Credit
Score
Just like your personal credit score, your business credit score
also plays an important role in your business loan qualification.
It’s different than your personal credit score, but can affect your
possibility of getting a commercial loan (or any other business
loan type).
Business
Information &
Permits
Just like your personal information,
your business information should also
be added to your documentation
checklist including business physical
address, business type, and employer
identification number (EIN).
Business
Permits
Access to any business licenses and
permits is also needed for lenders to
ensure you’re legally operational. You
need to make sure all permits or
licenses are updated and valid before
adding them to your documentation.
Personal
Information
As a business owner, your personal information should be
added to your commercial loan documentation checklist
including your name, physical address, SSN, valid ID, etc.
Tax Returns
You also need to have tax returns for at
least two years (both business and
personal) to verify your income and
revenue. Lenders will surely ask for
business tax returns, but some might
ask you for personal tax returns as well.
So, make sure you file them properly
and have the current tax returns for
review.
No matter what business loan type you’re applying for, there are few things you need to
understand and get yourself prepared for before you jump into the commercial loan
application process. Every lender requires documents, so you should be ready to have
those documents and pieces of information by your side including:

4. www.yourcompany.com
© 2017 The Worthy PowerPoint Presentation.
4
THE FINANCIALS
After you’ve completed your basic documentation, the next step is to pile up your important financial records. These financial documents are
equally important for a business loan application. Lender evaluate these documents during the business loan underwriting process to ensure you
have the revenue, cash flow, and financial health to carry the debt as well as to repay the lender. If you’re unable to gather these documents, its
best to work with your accountant to get them organized. They know your business books well—and can provide the clear picture of your
financials to the potential lender.
Current Business Bank
Statements
Profit & Loss
Statement
Cash Flow Projection
Business Debt
Schedule
Providing your current bank statements is an essential requirement
of every lenders. First, it shows a lender how capable a business is
or has the liquidity to repay the loan while being operational.
Secondly, it shows how responsible you are while utilizing money—
for example, do you save a good emergency fund, or spend a lot of
cash when income is sturdy?
Lenders also ask for your business profit and loss statements to
confirm the revenue. These are your business’ income
statements.
Being it a vital sign of your business financial health, the cash
flow projection enables lenders to assess how you think of your
future. The projection statement can vary; some might ask for 12
months projections, while some for two or three months’ only.
Business debt schedules indicates how your business is planning
to pay off or paying off its existing debts. The most common
elements of your debt schedule includes business leases, credit,
agreements, and any other intermittent payments your business
owe.
9
8
%
74
%59
%
7
3
%

5. 5
THE SPECIFICS
There are additional specifics you need to gather when applying for the loan application. Most of the lenders won’t even mention these
documents but you should have them with you..
Loan
Purpos
e
You should have a document of how you will use the loan being it an important document for the lender. How
you will use the funds and for what purpose. If the cash is to finance an equipment, a quote needs to be
provided for the equipment. In case of working capital, explanation is required for the projects on which
funding is intended.
Collateral
Busines
s Plan
While applying for loan, you’ll have to provide collateral documentation to the lender. These documents will
prove what type of collateral is you’re using to get your commercial loan approved.
A business plan is an important element of your business loan application. Lenders use a business plan to
understand exactly what you plans are for the company, whether you’re an established business or just
starting out. This also provides insights into your company’s policy, purpose, and the approaches you’ll use to
achieve your goals. This is particularly imperative for startups since they don’t have a track record.
www.onlinecheck.com

6. www.yourcompany.com
© 2017 The Worthy PowerPoint Presentation.
6
Documentation for Real Estate Loans
If you need a commercial loan for a real estate purchase, or for renovation, lenders will require documentation of ownership, insurance,
and much more. These documentation requirement will vary from lender to lender, so its recommended to discuss it with a loan
specialist to learn exactly what should be added to your checklist precisely. Here is a list of following documents you need to compile:
Basic information on the parties involved (Owners, Development & Management
Company, etc.)
The deed of the property
Contracts for sale and purchase
Existing liens
Property tax receipts
Property leases and/or rental agreements
Pictures of the property
Evidence of any insurances

7. www.yourcompany.com
© 2017 The Worthy PowerPoint Presentation.
7
Documentation for SBA Loans
If you’re applying for the US Small Business Administration’s (SBA) loan
programs, you’re require to submit documentation as well. SBA makes
financing quickly available to small businesses by collaborating with a
network of lender across the country. They guaranteeing a portion of these
loans, making it low interest rates loans with longer repayment terms—some
up to 25 years for real estate financing.
It is the most desirable financing option, but that too comes with a lot of
paperwork. These loans are the most paperwork-intensive in case of
commercial loans. You’re required to provide personal data including your
equity investment along with many of their exclusive forms, like SBA form 912
or SBA form 159. Here is a resource to help you get started with an SBA loan
application.
www.onlinecheck.com

8. www.yourcompany.com
© 2017 The Worthy PowerPoint Presentation.
8
The Bottom Line
Every commercial loan involves somewhat different
documentations, but if you’re organized well and
prepared early, getting funding without the hassle is as
easy as eating as a pie. This checklist will not only get
you a realistic picture of business financing options, but
also improve your chances of getting a quick ‘YES’ on
your loan application.
www.onlinecheck.com