If you want to be an entrepreneur with small or medium business, the first and most important step of starting a company is raising the fund. If you are a running a startup, then you must be aware of the hurdles related to acquisition of capital. There is two options either you can sell your equity in market or you can take a loan from any individual or organization.
Before applying for a business loan you need to check certain points.
Performance on financial front:
Lenders assess all financial foothold of your company which imprints in balance sheets, income statements, and proof of consistency of net worth. You need to submit 3 years of your financial statement to the lender.
Required Documents:
While applying for a business loan you need to be aware what all documents you have to submit. Here's a checklist to help you get all the documents sorted for the loan application:
- Proof of identity ( Voter ID, driver's license, or passport)
- Address proof (house agreement/ration card/telephone or electricity bill)
- Bank Statement ( last 6 months)
- Latest income tax report
- Balance sheet and profit & loss Statements certified by a chartered accountant.
- Educational qualification proof
- Trade license/sales tax report/establishment certificate
- Proof of business existence (at least 2 years old for an existing business)
- Proprietorship declarations, partnership deeds, copy of MOA, AOA, and board resolution
If you are a newbie in the business world and you have no idea about business loans, you must know all facts before applying for business loans.
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