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!
A quick poll with our team here in the New York office resulted in these 5 errors that most small businesses applying for working capital make:
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 for completion. Be mindful to ensure complete photocopies or scans of both back and front of bank statements are provided.
4. List All Business Owners:
Owners can include trusts, companies, business partner wives or siblings. They are often deemed as stockholders and therefore are required to be listed as owners on the business loan application form.
5. Correct Date Of Birth and Social Security Number:
While you may look younger than you feel, we need to make sure your DOB matches your public records. Also 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 demystify business loans and simplify the business loan application process. We can’t guarantee that your 5 year old will be able to complete the form. However, we hope that even a 5 year can remember to avoid these 5 business loan application errors.