The most frequent complaint people have about small business loans is how “tedious” it is to apply for them. So, what is it about this process that involves so much work? You’d likely get the same answer if you asked the average person to name the most annoying part of his or her job: Documentation.
Applying for a loan at United Capital Source (UCS), however, requires significantly less paperwork than banks as well as other traditional and alternative business lenders.
The general application for UCS is just one page long and, as several clients can attest, takes just minutes to complete.
United Capital Source offers five types of small business loans, each of which can be obtained by presenting a different but comparatively small collection of documents.
These loans are:
Merchant Cash Advance
Business Lines of Credit
Term Loans (36-60 months)
Below is a list of all the potential documents you’ll need followed by what type of loans require them:
- Business Bank Statement: If you are applying for a Merchant Cash Advance, you need business bank statements from the three most recent months. For the other four types of loans, business bank statements are required from the six most recent months.
- Credit Card Processing Statement: This is a summary of your business’s monthly credit card transactions. It is only necessary if you are applying for a Merchant Cash Advance, which requires these statements from the three most recent months.
- Business Tax Return: The applications for an SBA Loan and Term Loan requires three years of business tax returns. They are also required for Merchant Cash Advances or Business Loans of over $100,000.
- Personal Tax Return: Two years of personal tax returns are needed if you are applying for an SBA Loan or Term Loan.
- Personal Financial Statement: This an outline of the applicant’s current financial standing in regards to total assets and liabilities. The document usually includes account balances, retirement account balances, credit card balances and information on loans and mortgages. Compose a Personal Financial Statement if you are applying for a SBA Loan or Term Loan.
The following three documents make up a Business Financial Statement, which is required for a SBA Loan or Term Loan.
Their data is accumulated throughout the twelve months before the date of your application.
- Balance Sheet: This is an outline of the businesses’ assets, liabilities and stockholders’ equity. A strong balance sheet denotes that liabilities + stockholder’s equity is equal to the combined value of current and fixed assets.
- Income Statement: Also known as a Profit and Loss Statement, an Income Statement contains an overview of revenues, expenses, net income and earnings per share. This information allows you to project sales and operating expenses.
- Cash Flow Statement: This is broken down into three sections: Operating activities, investing activities, and financing activities. Operating activities involve the cash flows from sales and day-to-day operations. Investing activities involve the buying and selling of assets. Financing activities involve cash flows in regards to debt and equity. The statement’s purpose is to reveal how much money is coming in and out of your business.
Other lenders will likely ask for a detailed business plan. If you know your business is ready to expand but aren’t exactly sure how much you’ll need to spend or save over the coming months, chat with an expert at UCS. You’ll learn how to grow your business step-by-step and protect it from potential speed bumps by visiting the UCS website or calling 855.933.8638.