Overview
Lenders use documentation to judge whether your startup can repay a loan. The most common requests are designed to prove identity, legal structure, cash flow, creditworthiness, and management competence. Federal resources and most lenders follow similar standards (see SBA guidance at https://www.sba.gov).

Why documentation matters
Lenders—banks, community lenders, microlenders, and SBA lenders—are looking for evidence that your business has a plausible path to repayment. Documents reduce uncertainty and speed underwriting. Missing or disorganized files are one of the top reasons applications stall. For general SBA requirements, see sba.gov.

Core documents lenders commonly request

  • Business plan: Executive summary, market analysis, sales strategy, and 12–36 months of financial projections (profit & loss, cash flow, and a simple break-even analysis).
  • Personal financial statement: Assets, liabilities, income, and monthly obligations for each owner or guarantor.
  • Personal tax returns: Typically the last 1–3 years of personal federal tax returns if business returns don’t exist (IRS guidance on tax records: https://www.irs.gov).
  • Business tax returns: If your business has filed taxes, include the last 1–3 years.
  • Bank statements: Usually 3–12 months of business and personal bank statements to show cash flow and bank history.
  • Government ID and ownership records: Driver’s license or passport, articles of organization/incorporation, operating agreement, partnership agreement, and ownership breakdown.
  • Financial projections and assumptions: Monthly sales and expense projections with clear assumptions for at least 12 months.
  • Collateral documentation: Appraisals, vehicle titles, or equipment lists if the loan requires collateral.
  • Licenses and permits: Any industry licenses, health permits, or local business permits required to operate.

Optional or industry-specific documents

  • Contracts or purchase orders that show committed future revenue.
  • Lease agreements for commercial space.
  • Resumes or bios of founders to establish relevant experience.
  • Patents, trademarks, or IP documents for tech or product startups.

How lenders use the documents
Underwriters verify that your story (plan + projections) matches historical data (bank statements, tax returns) and that personal finances aren’t a hidden risk. For very early-stage lenders or microlenders, personal credit and character assessments matter more than multiple years of business revenue (see relevant microlending guides at FinHelp).

Real-world example
In my practice I saw a services startup win approval after consolidating documents: a clear one-page executive summary, 12 months of cash-flow projections, 6 months of bank statements, and two years of personal tax returns. The lender said the tidy presentation and explicit assumptions shortened their review time.

Professional tips to prepare faster

  • Organize files into a single folder (digital + PDF copies) labeled by document type and date. Lenders appreciate searchable PDFs.
  • Reconcile bank statements and address any unexplained large transfers before submission.
  • Create a one-page loan summary: requested amount, use of funds, monthly repayment plan, and key assumptions.
  • Pre-run credit checks on owners and correct errors on credit reports before applying (Consumer Financial Protection Bureau: https://www.consumerfinance.gov).
  • If you expect to offer a personal guarantee, review that decision with a lawyer or advisor first; personal guarantees are common for startups.

Common mistakes to avoid

  • Submitting projections without clear assumptions.
  • Missing personal tax returns when business returns aren’t available.
  • Providing outdated or truncated bank histories.
  • Overlooking required licenses or lease paperwork.

Quick checklist (printable)
1) One-page loan request summary
2) Business plan + 12–36 month projections
3) Personal financial statements for owners
4) Personal tax returns (1–3 years)
5) Business tax returns (if available)
6) 3–12 months bank statements (business & personal)
7) IDs, formation documents, ownership records
8) Relevant contracts, leases, or permits
9) Collateral documents and appraisals (if needed)

Frequently asked questions

  • What if I don’t have business tax returns? Use personal tax returns and stronger projections; many microlenders accept that for very new businesses.
  • Do I need audited financials? Not for most startup loans; lenders expect basic, well-documented financials unless you’re seeking larger institutional loans.

Where to learn more (internal resources)

Authoritative sources

Professional disclaimer
This article is educational and not personalized financial advice. For guidance tailored to your startup and loan type, consult a licensed financial advisor or attorney.