Documents Required to receive a Canadian Business Loan
Updated: Sep 13, 2021
We know paperwork isn't fun, but the general rule of thumb is: "the larger the loan, the more paperwork involved"
Small Canadian business loans helps entrepreneurs to build, maintain or expand their business. You don’t always need to go to bank to secure funds for your business. Nowadays, many financial institutions are helping entrepreneurs to secure funds in a stress-free, hassle-free, and fast manner.
Every business has different needs, and no financial solution is one size fits all. If you need to qualify for Canadian business loan or government loans, you need to provide following documents to secure over $100,000.00 of funding for your business.
· Signed Credit Application– It helps you to prove how you intend to use the proceeds of the loan and earn the lender’s trust for the approval of your loan.
· Bank statements: These are needed by lender to know about the cash flow of your business for taking a decision to lend money.
· Balance Sheet (last two years) – These are often required by lenders so they can evaluate your total assets and liabilities.
· Income statement (last two years)–Your income statement will help your lender to know what your expenses are, how much your costs of goods sold are and what your net income is.
· Tax return – Tax return is used to confirm whether the income you claimed is the same as what you reported with the CRA. Lenders may also want to see if you are current with any GST obligations.
If there are any discrepancies, it lowers the chances of application approval.
There are lenders that don’t require all of this information. Some may need less, while others may ask for even more. Regardless of whether or not you will need all this documentation, it is good to have this information ready to eliminate any delay in getting your loan approved and secure your funds.