Guide to Getting a Business Loan as a Limited Liability Company (LLC)

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What Is a Limited Liability Company (LLC)?
Pros and Cons of Forming an LLC
How the Small Business Loan Process Is Different for LLCs
Types of LLC Business Loans
LLC Bank Loans
LLC Unsecured Loans
LLC Online Term Loans
LLC SBA Loans
LLC Invoice Factoring
LLC Line of Credit
LLC Merchant Cash Advance
What Documents You May Need
Financial Documentation
Business credit report Income tax return Personal financial statements from all owners with at least 20% interest in the LLC Up to one year of business bank statements Projected cash flow, income statements, and balance sheets Collateral documents that outline the value of any assets you intend to secure the loan with
Business Documents
Other Important Documents
Tips for Getting an LLC Business Loan
Determine What You Need
Consider Your Qualifications
Revenues: Lenders will want to know if your business has sufficient cash flow to repay the loan or financing. Credit: This shows lenders how your company has managed debt in the past. If your business doesn’t have much credit history, the lender will likely want to check your personal credit. Time in business: Many lenders have a minimum time in business requirement. Some require a minimum of two years in business, while others will provide financing to younger businesses and even startups. Collateral: This is a tangible asset pledged to secure the loan. Not all business loans require collateral.
Compare Lenders
Gather Documentation in Advance
The Takeaway
Frequently Asked Questions
About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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