Documents to collect from the owner

What is the core document set?

• Business bank statements, 3 to 6 months, all operating accounts. Lenders read revenue, average balance, NSFs and negative days from these.
• Business tax returns, last 2 years. Confirms revenue and profit, and the entity.
• Year to date profit and loss and balance sheet. Needed for anything over about $150,000 and for all bank and SBA products.
• Debt schedule. Every existing loan, advance and lease with balance, payment and lender. Hidden debt is the fastest way to a decline.
• Ownership and identity. Names, ownership percentages, home addresses and a government ID for everyone at 20% or more.
• Entity documents. EIN letter (or business number in Canada), articles of incorporation or organization, business licenses where relevant.
• Voided check or bank letter for funding.

What extra items do specific products need?

• Equipment financing or leasing: the vendor quote or invoice, equipment specifications, and the seller's details.
• Invoice factoring and A/R financing: an A/R aging report, sample invoices, the customer list with contact details, and any existing lien information.
• Business acquisition: letter of intent or purchase agreement, the target's 3 years of financials and tax returns, and a business plan or transition plan.
• Commercial real estate: purchase agreement or current lease, rent roll if income producing, property details, and an appraisal if one exists.
• SBA loans: SBA Form 1919 (borrower information), a personal financial statement (Form 413), a business plan for startups, and 3 years of returns where available.
• Startups: a business plan with projections, proof of owner investment, and personal financials.

Why does each item matter to a lender?

Bank statements are the primary evidence of cash flow and the first thing every underwriter opens. Tax returns prove the revenue is real and show profit. Year to date financials show the trend since the last return. The debt schedule lets the lender compute debt service coverage (see DSCR explained) and spot stacking. Ownership details satisfy know your customer rules and personal guarantee requirements. Product specific items prove the use of funds and the collateral.

What stalls files most often?

Large deposits that are not revenue (an owner injection, a transfer between accounts, a prior loan) with no explanation; missing months in the statement run; a debt schedule that does not match what appears on the statements; tax returns not yet filed for the last year with no extension on file; and ownership that does not add up to 100%. Ask about each of these when you review autofill suggestions.

How should I tag uploads?

Use the document types from the application contract when preparing each upload: bank statement (with month), tax return (with year), financial statement, debt schedule, identification, entity document, and the product specific types. Correct tags make autofill faster and more accurate and let readiness checks tell the owner exactly which month or year is missing.