When you are applying for a business loan, there are a few things that need to be done in order to have a good experience and a quick and smooth transaction. For you to get a business loan, the lender will need to make sure that you have met all the requirements. One of these requirements is your bank statements. Bank statements are essentially proof that a business can be trusted to pay back a loan on time because it’s financially solvent and performing optimally. Today, we’ll look into this a bit further.
Why Do Lenders Need Your Bank Statements?
Lenders need to make sure that your business can stay afloat before issuing you a loan. They need to determine that you are able to fund your normal business expenses every month while you pay your loan back. Lenders need to verify that if they give you this business loan, your business will have no issues paying it back later. That is why lenders need to check your bank statements. Lenders will check if your business has a healthy cash flow (in other words, if there’s a good and balanced level of cash coming in and out of your business). By being able to continuously be profitable every month, you are demonstrating to banks and lenders that you can handle more debt to scale your business.
Another reason why lenders will need to take a look at your bank statements is to dig deep and verify your business past. In other words, they will need to go back in time and see how your business has been performing financially speaking. A few things they will look at would be if you had any bankruptcies, late payments, debts, etc. By looking into your business past, your lender will determine if you are a good candidate for a business loan. A good and solid business financial past will increase your chances of getting a business loan.
However, have in mind that your bank statements are only one of the requirements and documents needed to get a business loan. In fact and depending on the financial institution you approach, the list can be quite extensive. You can get here a complete list of documents you need to apply for a business loan. This said, have in mind that some lenders like Camino Financial have fewer requirements and are more flexible than other financial institutions.
We invite you to learn why Camino Financial Has Fewer Business Loan Requirements Than Other Lenders
How Can You Provide Your Bank Statements to Your Lender?
There is a wide range of possibilities that a business can provide bank statements to a lender. Some may ask you to supply these bank statements in a particular manner to ensure the safety and security of a business’s sensitive information.
If you already have an account with the same bank you are trying to get a business loan from, then you should be in luck because the lender can just look up your account and find your bank statements there. But if that’s not the case and you are applying for a loan in a different institution than your own bank, there are other possibilities.
While every lender is different, most lenders may ask you to make copies of your documents and bring them in person. Others may require you to fax them over or just simply email them. Obviously, and regardless of the case, having an online bank account will help. Lenders tend to always use state of the art technology to better assist you. They want to make sure that the process is easy and fast but most importantly secure.
It would be wise to make sure that you keep your business account and your personal account are separate. When you are trying to get a business loan, you want to make sure that you can quickly gather the necessary bank statements with ease. You don’t want the hassle of trying to separate personal and business accounts when the time comes to organize your documents for a loan. It is best to be prepared beforehand.
Camino Financial: We check your bank statements in the most secure convenient way
We at Camino Financial can help you get a business loan. Our loan process is simple, fast and transparent. Our loan process takes entirely place online thanks to the state of the art technology. The use we do of PLAID is part of it.
What is PLAID? PLAID is a third-party service that allows us to access your bank statements in a safe and secure way and to speed up the process of getting a business loan. We understand that organizing and gathering your loan requirements takes time. With PLAID, you can save valuable time: you don’t need to visit your branch, fax or email any document. We all know that your time can be better spent on growing your business.
PLAID helps us access electronically the last 6 months of your business bank statements. After getting your authorization, we can access your bank statements: we don’t access or store your credentials (account username and password) and we can’t make any changes in your transactions.
We do this to ensure we match you with the best financing solution according to your profile and capital needs.
Learn here in depth why and how Camino Financial uses PLAID as part of their loan process.
By linking PLAID to your bank account you ensure and convenient and fast process: you can get the funds your business needs in a matter of days!
Apply today for a business loan and experience first-hand how our loan process can get you the funds you need for your business in no time.