Do you know what you need to do and provide when you apply for a business loan?
Or how important your bookkeeping is for that application?
(It’s true – remember all of those SBA and PPP loans last year for Covid? Bookkeepers and accountants were working around the clock trying to help businesses update their bookkeeping records as fast as possible so they could apply!)
And it’s not just bookkeeping – there’s a lot that goes into preparing for a business loan, and usually includes things like:
Double-checking your credit score
Gathering business and personal bank statements
Drawing up a detailed business plan
AND providing up-to-date financial reports, like balance sheets and income statements
So – guess what that means?
You won’t be able to apply for a loan – at least, not successfully – until your business’ bookkeeping is up to date.. Sorry to be the bearer of bad news.
And, depending on how outdated and complex your records are, that could take several days – even several weeks – just to get your business ready for loan applications!
So if you’re thinking of applying for one in the near future, please make sure you factor all this into your schedule and plan accordingly!
And, of course, if you have any questions about how to get your records current – or need a little extra help to get you there in time – just let us know. I’d love to help make this process easier for you, just like I do for the rest of my clients.
Also, check out these articles for more information on specifics you need to qualify for a loan and some pitfalls to watch out for.
How to Qualify for a Small-Business Loan in 5 Steps – NerdWallet
8 Issues Keeping You From Securing a Business Loan – businessnewsdaily.com
Kerry Postel – Founder CEO Principal
Abacus Business Solutions
Has Higher National Diploma in Business and Finance, Certified in QuickBooks, Member of American Institute of Bookkeepers, and over 20 years of bookkeeping experience including construction, travel, restaurants, events management, and other various professional services.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.