Whenever looking for a business loan, one may come across several people from naysayers to anecdotes that have their own ideas and opinions making the decision to take a loan either a daunting one getting deeper into debts or the one making the business flourish. So it is not necessary to adhere to everyone’s advice where a business is in need of leaps to expand.

Every bank will ask the borrower several things and documentations, which might be sometimes frustrating making the loan application a burdensome task. This is not only for the business loan but also for personal loans Philippines. But if one can look into all the details prior to making an application, the problems will automatically suppress.

  • Collaterals- For a startup firm, banks do provide loans for their business, but for such loans, they keep some security in the form of assets, car, and house as collateral. Banks look carefully scrutinizing the assets for reducing their risk.

  • Business plan- Looking for a business loan the bank might ask for the business plan to see the future of the business through their analysis. The standard summary of the company, its product, team, and expected revenue are required for commercial business loan applications.

  • Business financial details- All the bank accounts, credit card statements, debt accounts tax ID numbers are required by the bank for granting business loans.

  • Account receivables details- For ongoing businesses that are looking for a loan, the bank needs the details of account receivables for checking their sales and payment history. This is done only to check the status of the business and their capability in paying the monthly EMIs.

  • Financial statements audited- All the business assets and liabilities are listed in the balance sheet depicting the clear position of capital invested and the profits generated from the business. At least three-year statements must be prepared ready for getting involved in the loan application process.

  • Insurance information and personal details- These are mandatory to be submitted not only for the business loan but also for PBCom personal loan where all such documents are necessary to be submitted. The insurance details are a fine print to the direct payout on the death of any of the business partners.

  • Agreement on future ratios- This is generally required in case of commercial businesses where they calculate the ratios like, debt to equity ratio, quick ratio, current ratio, etc. These future ratios tell about the credit worthiness of the business where it becomes easy for the bank either to sanction the loan or reject the application process.

Regardless of any reason, every business needs funds for expanding its operations. Taking a loan is like improving the bottom line of the business connecting the finance directly with the increased revenue. There are a number of hurdles faced by anyone looking for a loan may it be for business or personal needs. But if we keep ourselves ready with the paperwork, no bank can reject the application process.


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