The documentation that commercial lenders require will vary depending on the type of loan, the size of the loan, and the borrower’s credit history. However, some common documents that commercial lenders require include:
- Personal financial statements. These statements will show the borrower’s income, assets, and liabilities.
- Business financial statements. These statements will show the borrower’s business income, assets, and liabilities.
- Tax returns. The lender will want to see the borrower’s personal and business tax returns for the past few years.
- Business plan. The lender will want to see a business plan that outlines the borrower’s business goals and how the loan will be used.
- Financial projections. The lender will want to see financial projections that show how the borrower expects to repay the loan.
- Security agreement. The lender will require the borrower to sign a security agreement that gives the lender security interest in the borrower’s assets.
- Personal guarantee. The lender may also require the borrower to sign a personal guarantee that makes the borrower personally liable for the loan.
The lender may also require other documents, such as copies of deeds, titles, and insurance policies. It is important to be prepared to provide all of the documents that the lender requires.