How to Acquire Small Business Credit

To acquire a small business line of credit, you must complete a credit application with all relevant documents attached. Key documents are needed to establish your business' financial and operating history. Once you contact a lender to learn about available credit products, you can begin the application process. The most effective strategy when applying for a small business loan is to provide as much detailed information as possible and limit documents to the most updated versions.

• 1

  Contact a lender who offers small business credit products and request an application for a small business line of credit. Identify your small business by its registered name, employer identification number, business license number, business address and business telephone number.

• 2

  Offer a detailed explanation of how the line of credit will be used for your small business. For example, provide an inventory of expected purchases and transactions. Itemize each item by category for easy review. For example, list items by capital expenses, refurbishment expenses and inventory expenses.

• 3

  Craft a repayment plan that summarizes the method by which you expect to repay the line of credit. Include repayment options if your small business fails and as a result cannot repay the loan. You may be asked to guarantee your line of credit with collateral, which is common for small business credit applications.

• 4

  Provide a copy of a credit report from your small business along with profit and loss statements from the previous three to five years.

• 5

  Attach personal banking statements if your business has insufficient credit history. Sign a release granting the lender access to your credit reports. Business and personal credit reports are available through TransUnion, Experian and Equifax credit bureaus.

• 6

  Submit a business plan that reflects information spanning the next three to five years. Offer detailed projections for annual business expansion, growth and profits.

• 7

  Add supporting documents to your application. Include your business' articles of organization -- which establish proof of your limited liability status -- company member profiles, lease agreements, contracts signed with third parties and partnership agreements.

• 8

  Endorse your application with your signature and hand it over for review.