A complete and valid loan application will help businesses make a good impression on the bank and increase the chances of getting approved. So what does a business loan application include and which bank should you borrow from? This article will guide you in detail on how to prepare a complete and accurate bank loan application.
What does a business loan application include?
Depending on each bank, there will be specific regulations on what a business loan application includes. Below are the common types of necessary documents that you can refer to:
Types of documents required when borrowing capital
To successfully borrow money from a bank, you need to prepare a complete and accurate set of documents. Here are the necessary documents:
Legal documents
Legal records are a collection of documents and papers issued by competent state agencies, certifying the rights and obligations of individuals.businessrelated to a specific issue. This is also the first question when you learn about what a business loan application includes. Specifically, according to SeABank, when borrowing capital, businesses need to prepare valid copies of the following documents:
- Certificate of Business Registration.
- Company charter.
- Tax registration certificate.
- Certificate of eligibility to do business for enterprises with conditional business lines.
- ID card/CCCD of legal representative and authorized person.
Legal documents are required documents when a business wants to borrow capital from a bank.
Financial Profile
The financial profile of the business will provide the bank with information about the financial situation of the business, helping the bank assess the business's ability to repay debts and make a loan decision. This will also be one of the answers you need to pay attention to when learning about what a business's loan profile includes.
Financial documents that businesses need to prepare when borrowing capital according to the reference from SeABank are as follows:
- Financial report in the last two years.
- The company's financial statements for the most recent quarter.
- Details of receivables, payables, inventories, fixed assets and items that account for a large proportion of total assets and total capital.
Collateral documents (if any)
Collateral file is a collection of documents and papers proving ownership of assets.businessused as security for bank loans. WhenbusinessWhen borrowing money from a bank by mortgage, the collateral file is an important part of the loan application. The collateral file usually includes:
- Documents proving ownership and right to use assets (real estate, personal property).
- Legal documents of the property owner.
- Other records.
Some other types of records
Besides the types of documents above, businesses may also need to prepare some of the following documents to be able to borrow from banks more successfully:
- Loan application form as prescribed is provided by the bank where the loan is taken.
- Loan options.
- Other documents on loan needs as prescribed.
The loan application must include a loan application according to bank regulations.
Steps to help businesses prepare loan applications
Below are the steps to prepare a complete and accurate loan application that businesses should know:
Step 1: Determine exactly your loan needs
- Clearly define the purpose of the loan: Purchase of fixed assets, business expansion, additional working capital,...
- Determine the amount of money needed to borrow: Based on the actual needs and repayment ability of the business.
- Determine loan term: Depends on loan purpose and business's ability to repay.
Step 2: Choose a suitable loan bank
- Find out about interest rates, fees and loan terms from different banks.
- Compare bank offers.
- Choose a reputable bank that suits your business needs.
Step 3. Carefully study the loan application
- Visit the website or contact the bank directly for advice on loan applications.
- Carefully study the bank's documentation requirements.
- Prepare all necessary documents and records in the loan application.
Step 4. Prepare loan application
- Organize your documents scientifically to make finding relevant documents easier.
- Ensure the accuracy and honesty of the information in the loan application.
- Prepare complete documents, in accordance with the bank's document format requirements (original/original copy/valid copy...).
Step 5: Submit loan application
- Submit loan application directly at bank branch or online (if available).
- Meet with bank staff to answer questions and get specific advice.
Step 6. Track and complete loan procedures
- Track loan application progress.
- Supplement documents as required by the bank (if any).
- Sign loan contracts, guarantee contracts and disburse funds.
To successfully borrow money from a bank, businesses need to prepare complete documents.
Where to borrow bank loans with reputation and quick procedures?
Currently, there are many reputable banks in Vietnam providing business loan services with competitive interest rates and quick procedures. Notable among them are business loan products provided by Southeast Asia Commercial Joint Stock Bank - SeABank.
SeABank is a reputable bank with 30 years of experience in the banking and finance sector, providing a variety of loan packages for businesses with many outstanding advantages such as:
- Always update loan interest rates according to the market, ensuring the most competitive interest rates for businesses.
- Simple loan procedures, quick disbursement process.
- Diverse loan products, suitable for the specific business and production sectors of customers, meeting customers' capital needs. Accepting a variety of collateral types with competitive loan/collateral value ratios.
- Providing professional, dedicated customer care services and comprehensive financial solutions to meet the diverse needs of businesses.
SeABank is offering a variety of business loan packages.
Conclude
Hopefully, with the detailed information provided in this article, you have answered the question of what a business loan application includes. In addition, you can also refer to other loan products at Southeast Asia Commercial Joint Stock Bank - SeABank.
SeaBank is proud to be a bank that accompanies Vietnamese businesses with many preferential loan products, competitive interest rates and simple procedures. We provide free consulting services and support businesses throughout the loan process.
Please contact SeABank immediately for advice and answers to all questions about business loans at the website or contact Hotline 1900.599.952 (KHDN).
