Does your company have an emergency package? You know where they tell you to have all your most important documents in one box so just in case you have to flee the facility in a panic due to impending doom you can grab the box on the way out?
Well as a lender it surprises me how many companies do not have a permanent loan package ready to send. There are some basic documents that are required for any commercial loan, and if getting access to capital is a time sensitive issue, having these documents readably available may certainly expedite the process, it also signals to the finance company that your operation is on the ball and you are motivated to close.
One set of documents that are always required are the company formation documents. Many times I find that the only copies are in a box somewhere after a move or an attorney has them. This delays the processing of your loan. The documents should include name changes, dba’s, jurisdiction moves, reorganizations, or any material agreements or shareholder filings.
Another set of documents might deal with any adverse events the company has encountered. Challenges do happen and being upfront with the details will win points rather than having to admit to things that show up in standard due diligence. If there was any sort of court related matters, have the documentation showing what happened. This goes for any
Payment of payroll taxes is a pressing subject with the IRS. If you rely a lot on 1099 independent contractors you should have documents backing up the fact that the contractors are paying their taxes. If you have had any delinquent tax issues – either Federal or State, even if it was many years ago, having release documents in your package helps by not having to ask for them.
The point of this is, the documents I have described are static. They don’t change or need updating for the most part. So having them organized in one place shouldn’t be a problem.
Some of the documents you could have already scanned and zipped into a file would be;
- Copy of original Articles of Inc and any filed amendments or name changes.
- Copy of your State Agency accepting your entity filing.
- Proof of EIN, some sort of pre-printed document sent directly from the IRS.
- Copies of the Owner(s) drivers license
- Past tax returns and year end financial statements
Then when the time comes all you would need to do is add the current financial statements and any relevant applications to get your loan process moving quickly.