Documents Needed for Business Funding

Documents Needed for Business Funding

Knowing exactly what documentation lenders require—and having it organized before you apply—can dramatically speed up your funding timeline and improve your approval odds. This comprehensive guide covers every document you might need, organized by funding type and lender category.

Universal Documentation Requirements

Documents Required by Nearly All Lenders

Regardless of funding type, you'll almost always need these basics:

Why Bank Statements Matter Most

For alternative lenders and most online funding sources, bank statements are the single most important document. They reveal:

• ●Average Monthly Deposits: Your revenue baseline
• ●Daily Balance Trends: Cash flow consistency
• ●NSF/Overdraft History: Risk indicators
• ●Existing Payment Obligations: Current debt load
• ●Deposit Sources: Business vs. loan deposits

Pro Tip: Make sure statements are complete (all pages) and show your business name matching your application.

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Documentation by Funding Type

Merchant Cash Advance (MCA)

MCAs require minimal documentation, which is part of their appeal:

Required:

• ●4 months business bank statements
• ●4 months credit card processing statements (if applicable)
• ●Valid ID
• ●Voided check
• ●Signed application

Sometimes Required:

• ●Business license
• ●Lease agreement (proof of business address)
• ●Tax returns (for larger advances)

Turnaround: Same-day to 48-hour decisions

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Business Line of Credit

Online/Alternative Lenders:

Traditional Bank Lines:

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Term Loans

Short-Term Online Lenders (Under $250K):

• ●3-6 months bank statements
• ●Application
• ●ID verification
• ●Business license

Traditional Bank Term Loans:

Turnaround: Online: 1-7 days | Traditional: 2-8 weeks

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SBA Loans

SBA loans require the most comprehensive documentation package:

Personal Financial Information:

• ●Personal financial statement (SBA Form 413)
• ●3 years personal tax returns
• ●Resume for each owner (20%+ ownership)
• ●Personal credit authorization

Business Financial Information:

• ●3 years business tax returns
• ●Year-to-date profit & loss statement
• ●Year-to-date balance sheet
• ●Debt schedule (all current business debts)
• ●Cash flow projections (for some programs)
• ●Accounts receivable/payable aging reports

Business Legal Documents:

• ●Business license/registration
• ●Articles of incorporation or organization
• ●Operating agreement or bylaws
• ●Franchise agreement (if applicable)
• ●Lease agreements
• ●Contracts with major customers/suppliers

Collateral Documentation:

• ●Real estate appraisals
• ●Equipment lists with values
• ●Vehicle titles
• ●UCC filing history

Additional Requirements:

• ●Business plan with financial projections
• ●Use of funds statement
• ●Environmental questionnaire (for real estate)
• ●Insurance certificates

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Invoice Factoring/Financing

Required Documents:

Customer-Specific Requirements:

• ●Contact information for invoice verification
• ●Credit applications from your customers
• ●Purchase orders or contracts supporting invoices

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Equipment Financing

Standard Requirements:

• ●Equipment quote or invoice
• ●Business bank statements (3-4 months)
• ●Application with business information
• ●ID verification

For Larger Transactions ($100K+):

• ●Business tax returns (1-2 years)
• ●Financial statements
• ●Equipment appraisal (for used equipment)

Equipment-Specific Documentation:

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Document Preparation Tips

Organizing Your Files

Create a digital folder structure:

Business_Funding_Docs/
├── Bank_Statements/
│   ├── 2024-01_Statement.pdf
│   ├── 2024-02_Statement.pdf
│   └── ...
├── Tax_Returns/
│   ├── Business/
│   └── Personal/
├── Financial_Statements/
│   ├── Profit_Loss_YTD.pdf
│   └── Balance_Sheet_YTD.pdf
├── Legal_Documents/
│   ├── Business_License.pdf
│   ├── Formation_Docs.pdf
│   └── Operating_Agreement.pdf
└── ID_Verification/
    └── Drivers_License.pdf

Common Document Issues to Avoid

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Document Requirements by Lender Type

Quick Reference Chart

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Speeding Up Your Application

Pre-Application Checklist

One Week Before Applying:

• ● Download recent bank statements
• ● Update P&L and balance sheet
• ● Verify business license is current
• ● Check personal credit report for errors
• ● Gather formation documents

Day of Application:

• ● Have all documents in digital format
• ● Ensure clear scans/photos of ID
• ● Know your EIN/SSN
• ● Have voided check ready
• ● Clear schedule for any verification calls

What Slows Down Applications

1. ●Submitting partial documentation: Always check requirements first
2. ●Illegible documents: Use clear scans, not phone photos of screens
3. ●Outdated information: Bank statements should be within 30 days
4. ●Unresponsive to requests: Answer underwriting questions promptly
5. ●Discrepancies in information: Ensure application matches documents

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Industry-Specific Documentation

Construction & Contractors

• ●Contractor's license
• ●Bonding information
• ●Current project contracts
• ●AIA billing documentation
• ●Lien waiver templates

Healthcare Practices

• ●Professional licenses (all practitioners)
• ●Malpractice insurance
• ●Medicare/Medicaid provider numbers
• ●Credentialing documentation
• ●Patient volume statistics

Restaurants & Food Service

• ●Health department permits
• ●Liquor license (if applicable)
• ●Food handler certifications
• ●Franchise agreement (if applicable)
• ●POS system reports

Transportation & Trucking

• ●MC Authority / DOT Number
• ●FMCSA registration
• ●Insurance certificates (cargo, liability)
• ●Vehicle registrations and titles
• ●IFTA records

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Summary: Documentation Readiness Checklist

For Fast Funding (MCA, Revenue-Based)

• ● 4 months bank statements (PDF)
• ● Processing statements (if card-based business)
• ● Valid ID
• ● Voided check
• ● Business license

For Traditional Loans (Bank, SBA)

• ● 3 years business tax returns
• ● 3 years personal tax returns
• ● Current financial statements
• ● Business formation documents
• ● Ownership documentation
• ● Collateral information
• ● Business plan and projections

Being prepared with comprehensive documentation before you apply demonstrates professionalism, speeds up the process, and often results in better offers. When lenders see organized, complete packages, they're more confident in their assessment—and more likely to approve your request at favorable terms.