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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 *...

One of the most common questions business owners ask is: How much money can my business borrow? There is no single formula that applies to every company. The amount of financing available depends on the type of credit facility, the financial strength of the business, its assets, and the lender’s underwriting criteria. What Determines My Business Borrowing Capacity? Lenders commonly evaluate: * Annual revenue * Profitability * Cash flow * Existing debt * Accounts receivable * Inventory *...

Which Type of Business Financing Is Right for You? Two common forms of business financing are a business line of credit and a term loan. The right choice depends largely on why your company needs capital and how you expect to use and repay it. What Is a Business Line of Credit? A business line of credit is generally a revolving facility. The business receives an approved credit limit and can draw funds as needed, subject to the terms of the facility. As borrowed amounts are repaid,...