Essential Criteria for Securing Business Financing

by Kieran Daly
March 1, 2023
Essential Criteria for Securing Business Financing

Congratulations–you’ve led your business to success and are ready to start growing! With the hunger for expansion comes the need for additional financing, but what do you need to get started? Backd is here to help guide you through the process so that you can easily secure funds to grow your business. It’s worth noting that the documentation required could vary from lender to lender, but this checklist will work as a comprehensive guide to ensure that you are always organized to meet any and all requirements when looking to finance your dream. 

1. Start with the Basics

Like any official document, you will want to begin with having your basic information organized. This is going to start with your legal name and a personal driver’s license to ensure that you can verify your identity. 

  • Personal driver's license

  • Business address and phone number

  • Date your business was established

You may want to follow this information by including your resume so that the assessor of your loan has a clear understanding of who you are and what your credibility is in your line of work.

2. Business Documentation

Next, it’s time to get your paperwork in order. 

  • Your business plan that includes your industry and the size of your business

  • Business license and permits

  • Articles of incorporation

  • Any third-party contracts that you may have

  • Commercial lease

  • Business insurance plan

  • Proof of collateral

3. Your Numbers

This is the nitty-gritty of the application and the part that could bear some of the heaviest weight. 

  • Annual revenue

  • Net profits

  • Annual gross sales

  • Balance Sheet

  • Income and cash flow

  • Most recent business bank statements

  • Accounts payable

  • Accounts receivable

  • Payroll records for all employees

4. Tax and Credit Documentation

The last parcel of information that you will want to be within reaching distance during the application process is your tax and credit history. 

  • Business Credit Report

  • Your Tax ID / Employee Identification Number

  • Personal tax return

  • Business tax return

  • Documentation of any and all balances your business might have tied to it

5. Fully Equipped and Armed for Success

While this information will help guide you through the application process, none of this is absolute. Different lenders may have their own requirements and it is always important to ensure that you thoroughly read through the requirements before submitting your application.

At Backd, we strive to make the process as quick and easy as possible, that’s why completing our application takes as little as 3 minutes with pre-approval in 24 hours. Grow your business when you want to.

What would you do with the right amount of capital?

Working Capital Advance

Easy payment structures offer amounts with fast turnaround, Simple and easy process to access working capital.

  • Flexible - no collateral required
  • $10K - $2M
  • Terms up to 16 months
  • Automatic daily or weekly, or semi-monthly payments

Business Line of Credit

Get instant access to revolving credit with unlimited terms, and the best rates for your business.

  • Draw funds anytime
  • $10K - $750K
  • Unlimited terms, incredible rates
  • Soft credit pull that doesn't affect your credit score