Background / Why this checklist matters

Lenders evaluate risk using documentation that proves you can repay a loan. Over the past decade lending has become more data-driven and standardized—so assembling the right paperwork up front shortens review times and raises your approval odds. In my practice helping business owners for 15 years, applicants who present clean, complete packages move through underwriting faster and get better pricing (SBA: sba.gov).

How lenders use these documents

Lenders look for three things: identity and ownership, evidence of cash flow and collateral, and the borrower’s personal creditworthiness. For startups they lean more on owner credit, business plan quality, and financial projections; for established businesses they expect historical financials, tax returns, and verifiable bank deposits. Lenders reconcile documents to check consistency (e.g., tax return income vs. bank deposits) and calculate ratios such as debt-service coverage (DSCR) and loan-to-value (LTV).

Common document checklist (what lenders typically ask for)

  • Business plan or executive summary explaining revenue model and intended use of funds.
  • Business financial statements: profit & loss (income statement), balance sheet, and cash-flow statements (historical if available; projections if new).
  • Personal financial statements for all owners with significant ownership (assets, liabilities, income).
  • Personal tax returns (usually last 2 years; SBA often expects this for guarantors) (SBA: https://www.sba.gov/).
  • Business tax returns (if the business has filed any).
  • Business bank statements (commonly 3–12 months; lenders vary by product).
  • Employer Identification Number (EIN) confirmation and formation documents (Articles of Organization/Incorporation).
  • Government-issued photo ID for all principal owners.
  • Business licenses, permits, and any industry-specific certifications.
  • Lease agreements or proof of property ownership if real estate factors into the loan.
  • Contracts, purchase orders, and major customer agreements that show revenue visibility.
  • Collateral documentation (equipment titles, real-estate deeds, UCC filings) when applicable.
  • Credit reports (personal credit for owners; some lenders pull business credit too).
  • Debt schedule listing existing loans, monthly payments, and maturities.
  • Insurance certificates and key operational documents as requested.

Quick reference table

Document type Why lenders want it
Business plan Shows how loan proceeds will generate revenue and repay debt
Financial statements / projections Demonstrate cash flow, profitability, and DSCR
Personal & business tax returns Verify income and tax-reported earnings (commonly 2 years)
Bank statements Confirm cash flow and deposits
IDs & formation docs Confirm legal ownership and authority
Contracts & leases Provide evidence of future or ongoing revenue/obligations
Collateral papers Establish security value for secured loans

Real-world examples

  • Startup founder: Without prior business tax returns, the lender required a detailed 12–month cash-flow forecast, personal tax returns, and a guarantor. The clear projections and explanation of customer acquisition costs helped the borrower secure a small term loan.
  • Established retail shop: Providing 12 months of bank statements, two years of P&L and balance sheets, and signed supplier contracts sped approval and improved loan terms.

Who is affected / eligible

Any first-time business borrower—sole proprietor, partnership, LLC, S/Corp, or C/Corp—may need these documents. Requirements differ by lender type (community bank, online lender, SBA lender) and loan product (term loan, line of credit, equipment loan). Government-backed loans (SBA) often have stricter checklist items and personal guarantee rules (SBA guidance: https://www.sba.gov/).

Professional tips and strategies

  1. Start early: Gather IDs, tax returns, bank statements, and formation documents before you apply.
  2. Standardize formats: Use clear PDFs, label files, and include a one-page cover index for reviewers.
  3. Be conservative in projections: Lenders prefer realistic revenue timelines and defensible assumptions.
  4. Address inconsistencies proactively: If a tax return shows different income than bank deposits, add a short explanatory note.
  5. Consider working with an accountant or loan packager to prepare clean financial statements (see our guide on preparing financials: “Preparing Financial Statements for a Small Business Loan Application” at https://finhelp.io/glossary/preparing-financial-statements-for-a-small-business-loan-application/).

Documents lenders actually want (linking to related resources)

Common mistakes and misconceptions

  • Mistake: Assuming a single, short business plan is enough. Lenders want both strategy and credible financial projections.
  • Mistake: Omitting co-owner tax returns or credit info—this delays underwriting.
  • Misconception: New businesses can’t qualify. They can, but lenders substitute owner creditworthiness and projections for historical business performance.

Frequently asked questions

Q: How many years of tax returns do lenders usually ask for?
A: Most lenders ask for the last 2 years of personal tax returns for owners; business returns when available. SBA-backed loans often require these as part of underwriting (SBA).

Q: I’m a sole proprietor—do I need personal and business documents?
A: Yes. Sole proprietors should expect to provide personal tax returns, a Schedule C, bank statements, and a personal financial statement.

Q: What if I don’t have business financial history?
A: Provide a detailed business plan, conservative cash-flow projections, personal financials, and any contracts or letters of intent that demonstrate future revenue.

Professional disclaimer

This article is educational and not a substitute for personalized financial or legal advice. Document and underwriting requirements vary by lender and loan product—consult a qualified accountant, attorney, or loan advisor about your specific situation.

Authoritative sources

Last reviewed: 2025