One of the most common issues for delayed applications from small businesses seeking business funding is, that’s right you guessed it, errors in completing the business loan application form!
1. Inaccurately Reporting Monthly Revenue: Remember, gross revenue before cost of goods sold is the top line revenue calculation and not net revenue. Be sure to provide the correct top line monthly sales revenue number.
2. Entering the wrong Federal Tax ID#: An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. You need this number when applying for a business loan.
3. Complete Front & Back Statements Bank Accounts: Both sides of the bank statements are required in completion. Be mindful to ensure complete photocopies or scans of both back and front of bank statements are provided.
4. List All Business Owners: Often owners include trusts, companies owned by persons, business partner wives or siblings are often deemed as stockholders and hence are required to be listed as business owners on the application form.
5. Correct Date Of Birth and Social Security Number: While you may look younger than what you feel or actually are, we do need to make sure your date of birth matches your public records (birth certificate, drivers licence, passport) and that your Social Security Number has 9 digits, not 8!
TIP: Before submitting the business loan application to us, be sure that you have read our small business funding checklist tips.
At United Capital Source, we’re helping make business loans accessible to businesses in many industries such as franchises, pharmacies and even limousine driver loans. Our mission is to demistify business loans and simplify the loan application process. While we can’t guarantee that your 5 year old will be able to complete the form as well as playing games on your mobile phone, we hope that even a 5 year can remember to avoid these 5 common errors when you complete the business loan application.