Free Checklist
21 Things to Review Before You Apply for a Business Loan
Use this checklist to understand what lenders may review before approving a business loan, line of credit, SBA loan, or equipment loan.
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What the Checklist Covers
Business Information
- Legal business name and DBA (if applicable)
- Business structure (LLC, S-Corp, sole prop, etc.)
- EIN (Employer Identification Number)
- Years in business and date established
Revenue and Cash Flow
- Last 12 months of revenue figures
- Monthly operating expenses
- Seasonality patterns that affect cash flow
- Outstanding accounts receivable
Credit Profile
- Estimated personal credit score (no pull needed)
- Any open collections, judgments, or liens
- Business credit profile (if established)
Existing Debt
- Outstanding business loans and balances
- Monthly debt payments
- Merchant cash advances or revenue-based debt
- Credit card balances used for business
Loan Purpose
- Clear description of what the funds will be used for
- Written use-of-funds explanation (1 page)
- Tie between loan purpose and business growth
Collateral
- Business or personal assets available as collateral
- Estimated values of those assets
- Existing liens on any collateral
Tax Returns
- 2 years of business tax returns
- 2 years of personal tax returns (if personally guaranteeing)
- Filed and signed copies (not drafts)
Bank Statements
- 12 months of business bank statements
- All business accounts included
- Statements showing consistent deposit patterns
Financial Statements
- Year-to-date Profit & Loss Statement
- Current Balance Sheet
- Prior year financial statements if available
Business Plan / Use of Funds
- Written explanation of how loan proceeds will be used
- Projected impact on revenue or operations
- Repayment strategy
Ownership Information
- Ownership percentage breakdown for all owners
- 20%+ owners typically required on SBA loans
- Operating agreement or shareholder agreement
Red Flags to Fix Before Applying
- NSF fees or overdrafts in bank statements
- Missing or unfiled tax returns
- Undisclosed liens or judgments
- Very recent business formation (<1 year)
- High existing debt relative to revenue