As a future small business owner, you have a lot of decisions to make, from whether to incorporate to how many employees you want to have. Perhaps the most important decision is how to fund your new business.
If you've decided to seek debt financing for your business venture, you'll want to understand all terms and condition of any loan you agree to. Private and government lenders require detailed information from prospective borrowers. You should gather all the required documentation early in the process to avoid delays.
Business Loan for Purchase of an Existing Business
Keep in mind, if you are purchasing an existing business, you will need to collect additional information like current balance sheets, profit and loss statements, previous federal incomes tax returns of the business, and more. Be sure to include information regarding the asking price of the business, complete with a schedule of inventory and equipment.
To assist you in putting your best foot forward, the following is a checklist of information and documents to be included in your business loan application package. Use the checklist below to ensure you have everything the lender will ask for to complete your application.
For more information, visit FindLaw's Business Finances section.
How a Lawyer Can Help
The decision to seek out a loan for your small business venture is one that shouldn't be taken lightly. A skilled business and commercial law attorney can help you get the best possible terms and make the process go as smoothly as possible. Be sure to have your attorney review all documentation before submitting it to your loan provider to ensure accuracy.