What Documents Do I Need for a Business Line of Credit?

Preparing the right documentation can make the business financing process significantly more efficient.

Requirements vary by lender, financing amount, and credit structure, but established businesses should generally be prepared to provide detailed financial information.

Common Documents Requested by Lenders

A lender may request:

* Business financial statements

* Year-to-date balance sheet

* Year-to-date profit and loss statement

* Historical financial statements

* Business tax returns

* Recent business bank statements

* Accounts receivable aging

* Accounts payable aging

* Existing debt schedule

* Ownership information

* Business formation documents

* Information about the financing request

* Intended use of funds

What Is Needed for Asset-Based Lending?

For an ABL facility, additional documentation may include:

* Detailed accounts receivable aging

* Customer concentration information

* Inventory reports

* Equipment lists

* Borrowing base information

* Existing lien information

* Customer and invoice documentation

Larger transactions may also involve field examinations, appraisals, or other due diligence.

What About Construction Companies?

Construction businesses may be asked for additional information such as:

* Work-in-progress schedules

* Project or job reports

* Accounts receivable by project

* Contract information

* Percentage-of-completion information

* Project pipeline

* Customer payment history

Do Owners Need to Provide Personal Financial Information?

Depending on the lender and financing structure, owners or guarantors may be required to provide personal financial statements, identification, tax information, or other documentation.

Requirements vary significantly between lenders.

Why Is Preparation Important?

Incomplete or inconsistent financial information can slow underwriting.

A well-organized financing package allows the lender to understand the company, financing request, repayment capacity, and available collateral more efficiently.

Lirodean Can Help Prepare Your Financing Request

Lirodean helps businesses identify the documentation relevant to their financing request, organize the financing package, and communicate with potential lenders throughout underwriting.

Contact Lirodean to discuss your business financing requirements.

Documentation requirements vary by lender and transaction. Providing documents does not guarantee financing approval.