What Documents Do I Need to Apply?

When applying for funding with FundLocal, we strive to make the process as quick and straightforward as possible. To assess your eligibility and ensure fast approval, you'll need to submit specific business documents that demonstrate your company’s financial health and ability to repay the loan or credit line.

This guide outlines the key documents you need to apply for our financing options, including Business Lines of Credit, Working Capital Loans, and Equipment Financing.

Here are the primary documents you’ll need to provide when applying for funding with FundLocal:

1. Recent Business Bank Statements

Business bank statements are one of the most critical documents required for your application. FundLocal uses these statements to evaluate your business’s cash flow, daily balances, and overall financial stability.

• Requirement:

  • 3 months of bank statements for most states.

  • 4 months of bank statements for businesses located in California, New York, and Utah.

• Why It’s Important: Business bank statements show consistent revenue, cash flow patterns, and how well your business manages its finances. This helps us assess your ability to repay the loan or credit line.

• Tip: Make sure your bank statements are up to date and accurate before submitting.

2. Business Information

You will need to provide essential business details when applying, which helps us verify your company’s legitimacy and ensure compliance with our requirements.

• Required Information:

  • Business Name: The legal name of your business as registered with the state.

  • Business Structure: Your legal structure (LLC, Corporation, Sole Proprietorship, etc.).

  • Time in Business: FundLocal requires at least 6 months in business to qualify for funding.

  • Business Address: Your company’s physical or mailing address.

  • Business Tax ID: Your Employer Identification Number (EIN) or Social Security number (for sole proprietors).

• Why It’s Important: These details confirm your business is legally registered and compliant with state and federal regulations.

3. Annual Revenue Information

Your business’s annual revenue is another critical factor in determining your eligibility for financing. FundLocal typically requires businesses to have at least $100,000 in annual revenue.

• Required Information:

  • Your estimated or actual annual revenue for the past year.

  • You may also need to provide profit and loss statements or other revenue reports to verify your earnings.

• Why It’s Important: Annual revenue demonstrates your business’s ability to generate income, which is key to assessing whether you can repay the loan.

4. Business Checking Account Details

Since FundLocal requires automatic payments, you’ll need to provide the details of your business checking account where the loan funds will be deposited and from which payments will be automatically deducted.

• Required Information:

  • Bank name

  • Account number

  • Routing number

• Why It’s Important: This ensures that you have a valid business checking account for receiving funds and managing loan repayments. FundLocal uses automatic withdrawals for scheduled payments, ensuring timely repayments without manual intervention.

5. Personal Identification (If Applicable)

In some cases, FundLocal may request personal identification from the business owner(s) for verification purposes. This is more common if the loan requires a personal guarantee.

• Required Documents:

  • Driver’s license or government-issued ID of the business owner(s).

  • Social Security Number (for personal guarantee-backed loans).

• Why It’s Important: Personal identification helps verify the identity of the business owner(s) and ensures compliance with financial regulations.

Depending on your specific situation, FundLocal may request additional documents to get a clearer picture of your business’s financial health. These documents are typically requested if further verification is needed during the application process:

1. Profit and Loss (P&L) Statement

A Profit and Loss (P&L) statement provides a summary of your business’s revenues, costs, and expenses over a specific period. It helps lenders understand how profitable your business is.

• When It’s Needed: You may be asked to provide a P&L statement if your business’s revenue patterns or cash flow require further clarification.

• Why It’s Important: A P&L statement offers insight into your business’s profitability, which is crucial for ensuring you can manage loan repayments.

2. Balance Sheet

A balance sheet is a financial document that outlines your company’s assets, liabilities, and shareholder equity at a given point in time. It provides a snapshot of your business’s financial standing.

• When It’s Needed: FundLocal may request a balance sheet for larger loans or lines of credit to assess the overall financial stability of your business.

• Why It’s Important: This document helps lenders understand how much debt your business carries compared to its assets, which is important when evaluating risk.

3. Tax Returns

In some cases, especially for larger loan amounts, FundLocal may request business tax returns to verify income and revenue information.

• When It’s Needed: If further verification of your revenue or profit is required, tax returns may be requested to support the information provided in your application.

• Why It’s Important: Tax returns give lenders a comprehensive view of your business’s income and expenses over a full year, ensuring the accuracy of reported financials.

1. Can I apply if my business is less than 6 months old?

• No, FundLocal requires businesses to have been operational for at least 6 months to qualify for funding. This ensures your business has an established financial track record.

2. What if I don’t have all the documents ready?

• You should aim to submit complete and accurate documentation to avoid delays in the application process. If you’re missing any documents, contact FundLocal’s support team for guidance.

3. Will FundLocal run a hard credit check?

• No, FundLocal typically uses a soft credit check to provide initial funding quotes, which won’t affect your credit score. However, additional financial documentation may be required for final approval.

4. How do I submit the required documents?

• All required documents can be uploaded through FundLocal’s secure online portal during the application process. Ensure your documents are up to date and easy to read for faster processing.

If you’re ready to apply for funding but need assistance gathering the required documents, FundLocal’s support team is here to help. Contact us today for guidance on preparing your application and submitting the necessary paperwork. We’ll work with you to ensure a smooth and fast approval process!