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Online Loan Application and Required Documentation

There are many different ways to apply for a business loan today. Some of which have changed dramatically since people can choose a conventional business loan from a banking institution, credit union or a financial institution online. Though online financial institutions have opened up additional doors, it is essential that people know what they will need to supply them when they are completing an online loan application options for their specific needs. With this being said, here’s 4 common things that the financial institution will ask for before approving a business loan.
  • Company’s Business Plan
Before a business owner opens their doors, there are some things that they must have complete in advance. Specifically, if the business owners want to be successful and that is a business plan. The business plan outlines a detailed scope of what type of operations and activities will be run, how many employees it takes to run the operations efficiently, where the business will be located, what type of facilities will be needed (rented or purchased), what kinds of equipment is required to operate it effectively and the like. All of which will be used by the business manager to implement the ideas that they have had in their head. Once this information is documented, this is also an excellent and required tool for obtaining the financing that will be needed to get the business up off of ground floor.

With this information, the bank will use it to determine a diversity of factors when approving or rejecting the loan. This information is used to determine how much financing is actually required, if the plan looks like it is doable and profitable, and the like. So, this information should be prepared well in advance in order to have it when the bank requests this data.
  • Collateral
In addition to providing the financial institution with a business plan, the bank will also look for some type of collateral for the loan. Collateral for the loan may be provided in the form of diversity of things including property that the business owns, heavy large equipment and anything that the bank can use to cover the amount in the even that there is a loss. The type of collateral that will be needed can be furnished by the financial institution that will be approving the loan.
  • Insurance Information
Another important piece of information that will be requested by the financial institution is insurance information. Depending on how long the business has been in operations, the bank may ask for verification of a life insurance against the founder in order to obtain the financing that is needed. Because the banking institution wants to ensure that their risks is further minimized when approving the loan, they will ask for this type of insurance to be documented and provided in advance.
  • Copies of Tax Returns
Determining how much money comes into the business is also made easy with the use of the Tax returns. Therefore, when a financial institution wants to know what really goes on the books as income and expenses, they will ask for copies of the companies tax returns for a specific amount of years.

Applying for a loan online is often similar to applying for a business online onsite. This is because there is specific information that will need to be supplied to the financial institution with the application that is submitted. The information provided will be in the form of the companies tax returns, insurance information, business plans and collateral. Once this information has been supplied, the financial institution can review the loan for either acceptance or its rejection.

FFC Members

Members

Financial Futures Calgary is a group of people representing over 40 social service organizations, government institutions, businesses and financial institutions. Explore the full list of Financial Futures Calgary members and connect with us.

United Way Calgary and Area / LendingArch, Inc.  /  Momentum / BMO Financial Group  TD Financial Group  / First Calgary Financial / Bullfrog Insurance / Government of Alberta / Money Mentors / ATB Financial / Calgary Public Library / Bow Valley College / SAIT / RBC Royal Bank / Enmax Corporation / CanLearn Society / Calgary Catholic School Board / Scotiabank / Catholic Family Services / Frog Skin U / City of Calgary / Junior Achievement Southern Alberta / Sharp Insurance  /  Aspen Family Services / The Mustard Seed / Rogers Insurance / Calgary Counselling Centre / University of Calgary / Canadian Immigrant Women's Association / Women In Need Society Vecova / Women's Centre / Prospect Human Services Calgary John Howard Society / Bromwich and Smith / Canadian Youth Business Foundation / Mt. Royal University / Indemnity Insurance / Literacy Alberta / Centre for Newcomers / Champions Career Centre / Imagine Calgary / Servus Credit Union / Vibrant Communities Calgary / Calgary Local Immigration Partnership / Immigrant Sector Council of Calgary / EMethod 

Financial Futures Calgary also partners with the Alberta Asset Building Collaborative consisting of the City of Edmonton, United Way of the Alberta Capitial Region, Momentum, The Home Program and United Way of Central Alberta.

Financial Futures Calgary also partners with a National Community of Practice in Asset Building called ABLE. This Community of Practice is lead by Community Economic Development organizations such as The SEED Winnipeg, Momentum Calgary, The Alberta Asset Building Collaborative and Social Enterprise Development and Innovation, Toronto.

Financial Futures Calgary and its collaboration partners make every reasonable effort to ensure the accuracy and validity of the information provided on its web pages. However, as policies, price points, dates, conditions, and information are continually changing, Financial Futures Calgary and its collaboration partners reserve the right to change at any time without notice, information contained on this website and makes no warranties or representations as to its accuracy.