Most business owners show up to a loan meeting with a pile of documents in a folder. Some come with nothing and wait to be told what to bring. A small number walk in with a complete, organized loan package that makes the banker's job easy from minute one.
Guess which group gets approved faster.
The loan package is your first impression inside the credit process. Before your banker has analyzed a single number, they've already formed an opinion based on how prepared you are. An organized, complete package signals that you run a tight operation. A disorganized one signals the opposite.
The core documents every loan package needs
• Last 3 years of business tax returns — signed copies
• Last 3 years of personal tax returns — for all owners with 20% or more ownership
• Year-to-date profit and loss statement — current within 60 days
• Current balance sheet — dated within 60 days
• Last 12 months of business bank statements — all pages, all accounts
• Personal financial statement — assets, liabilities, net worth for all guarantors
• Debt schedule — a list of all existing business and personal debt with balances and monthly payments
• Business licenses and formation documents — LLC operating agreement, articles of incorporation
The debt schedule is the one document most people forget. Bankers need to know every dollar you already owe before they can calculate your DSCR. A missing or incomplete debt schedule slows your approval by days or weeks. |
Additional documents depending on loan type
For real estate loans: add a current rent roll if there are tenants, a purchase agreement or appraisal, and any existing leases.
For equipment loans: add a vendor quote or purchase agreement with the exact equipment description and cost.
For business acquisition loans: add three years of the target business's tax returns and financials, a purchase agreement, and a business valuation if available.
How to present it
Physical package: organized in a binder or folder with tabs. Label each section clearly. Put a cover page at the front with your business name, loan request amount, and contact information.
Digital package: a single PDF with bookmarks for each section, or a clearly labeled folder of individual PDFs. Send it before your meeting — not at it.
The cover page matters more than people think. It should state: business name, business type, years in operation, loan amount requested, purpose of the loan, and primary contact. One page. Clean. Professional.
The one thing that separates good packages from great ones
A two-page loan narrative at the front. We covered this last issue. Business overview, loan purpose, repayment plan, and a brief acknowledgment of any risk factors with your explanation.
Most people don't include one. Include one.
The goal of your loan package is to answer every question before it's asked. When a banker opens your file and finds everything they need, organized exactly the way they want it, you've already differentiated yourself from 90 percent of applicants.
Next issue: SBA vs. conventional loans — which one is actually right for your situation, explained without the marketing language.
— The Credit Desk