Business Loans That Don’t Require Tax Returns
Did you know you can still get business loans without providing your tax returns?If you have already contacted your bank to see what the requirements are for a small business loan, you have already discovered the amount of paperwork might not be obtainable for your situation. Because of all the red tape the banks have seen some of their clients finding alternative solutions for the business loans. Less paperwork is becoming a more common practice in non-traditional business loans, almost to the point where it seems these lenders might be too lenient.
Strike while the iron’s hot!Before the banking meltdown of 2008, the banks were writing loans to anyone that could fog a mirror. Subprime lending and Alt-A programs made it very easy to qualify for a home loan, almost anyone could become a homeowner. Depending on the timing, some people really benefited from these types of programs, they were able to acquire multiple properties and either flipped them for huge profits or kept them for their portfolio. But the key here was their timing, they took advantage of the programs that were around and now that those programs aren’t available anymore it’s more difficult to acquire properties and make money. Alternative business lending will be around as long as the loans that are funded are performing. Unlike the mortgage crisis where these loans started to default, the banks had to stop funding under those parameters.
What will I need to provide for a non-traditional business loan?Depending on who you decide to go with, they all have different requirements. However the most common items required when applying for a working capital loan:
- 3 to 6 months bank statements from all business bank accounts for the most recent months
- 3 to 4 months credit card processing statements for the most recent months if you business processes credit cards
- Application (this can be anywhere from 1 to 2 pages, but very basic information)
- Voided check from the business bank account so they can wire the funds
- Copy of Drivers License or Passport to prove you are the business owner(s)
- Sometimes they will want to do a site inspection of your business to make they feel a little more comfortable with the loan.
- Copy of voided rental check if your business is renting it’s location, if you have a mortgage they will want to see your current mortgage statement showing that you are current.
- Verbal verification with the business owner and the funding source, they will go over the loan terms with the business owner one more time to make sure they fully understand them.