There are various steps and procedures followed by banks to provide funds. The procedure and documents to be submitted to the banks as follows
Identity and address proof of the company - Address proof and identity proof of partnership or proprietor business.
Statutory legal registration of the company - Whether the company is legally registered under government norms and have followed all procedures legally in setting business.
Financial statement of the company - Every bank is interested in seeing the recent 1-year business transaction of the company.
Income tax returns - ITR helps the bankers to check the business performance, efficiency level, assets and liabilities of the company and also tax that company pays from their current earnings. This also plays a major role in deciding the loan amount for the business people.
Financial Security - It includes the fixed and movable assets of the company which helps the banker to consider providing business loans based on the asset value along with the business transactions. This also safeguards banks from the failure of businessmen that fail to repay the loan amount.
Previous Loan track - This is a very important factor considered by banks which will help them evaluate the financial condition of the business and also to check on past repayments on loans.
Litigation - It will help banks assess the character of businessmen before providing a business loan.
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So, bear in mind that obtaining a loan is not that big of a challenge. Most of the times, it is just some small mistakes in the areas mentioned above that become the cause of lost opportunities to get the right loans for your business. Create a solid business plan, choose the right people to represent your business and use all the options that are available to you at the right time to grow your business at the pace you want.