How to Properly Complete Applications for Business Credit

A business can apply for a business line of credit through a bank, credit lender, private lender or other financial institution. The process is moderately easy, but you must obtain the required documents before your application is complete and ready for review. Once your paperwork is in order, sit down with your lender--or alone--and review the terms and conditions of the line of credit, including provisions related to interest rates and non-payment fees.

• 1

  Fill out your credit application entirely. Provide mandatory information, such as an employer identification number, business license number (which must match your business address), business name, business address (which must appear on your articles of organization) and publicly listed dedicated business telephone number.

• 2

  Offer detailed reasons why you are applying for business credit, and itemize the ways in which loan money will be used and disbursed. State the names of suppliers and list any assets you intend to purchase. List any other business debts by creditor.

• 3

  Show proof that your business is properly and legally structured. Provide the articles of organization, which confirm that your business is a corporation or limited liability company, for example. Include the names of your management team.

• 4

  Provide profit and loss statements from the previous three to five years, or estimate potential assets and liabilities for a start-up.

• 5

  Submit a business credit report, which you can purchase from Experian, Equifax or TransUnion.

• 6

  Submit personal banking statements if the lender requires you to guarantee the business line of credit. In such cases, sign and date an authorization form allowing the lender to request a copy of your credit reports. An authorization form is typically included within your credit application package.

• 7

  Provide an updated business plan with your credit application. Include a business plan for the next three to five years, along with personal profiles of company owners. If requested, staple or include lease agreements and partnership agreements with your application.

• 8

  Attach a repayment plan. Outline the way in which you expect to repay your business line of credit. Provide a secondary statement about how you will repay the loan if your business cannot.

• 9

  Sign and date your completed credit applications and submit them for review. Initialize any disclosures as requested by your lender.