What documents do you need for your funding application? A business owner’s guide

Making applications is quicker and less hassle when the information you need is already at hand

Your business needs funding, but the phone is ringing. And that new staff member has a question. And your biggest customer is expecting a revised quote by the end of the day….

Making an application for funding feels like it’s going to be hard work before you settle down and get started. But by getting everything that you need together before you begin, you’ll find that you get through it more quickly. 

Here are the key documents typically requested by lenders, investors and grant awarding bodies:

Financial Documents

• Profit & Loss statement: This document shows your business’s revenue, expenses, and net profit over a specific period.
• Balance sheet: A snapshot of your business’s financial health, including assets, liabilities, and equity.
• Cash flow statement: This statement reveals your business’s inflows and outflows of cash.
• Tax returns: Corporate and personal tax returns can provide valuable insights into your financial history.
• Profit and loss projections: Forecasts of your future income and expenses.

Business Plans

• Business plan: A detailed outline of your business, including its mission, goals, market analysis, and financial projections.
• Executive summary: A concise overview of your business plan, typically one to two pages long.

Legal Documents

• Articles of incorporation or partnership agreement: These documents establish your business’s legal structure.
• Operating agreement: For limited liability companies (LLCs), this agreement outlines the rights and responsibilities of members.
• Permits and licences: Any necessary permits or licences required for your business operations.

Personal Information

• Personal financial statements: Your personal income tax returns and bank statements may be requested.
• Resumes: Your resume and the resumes of key employees can demonstrate your team’s experience and qualifications.

Additional Documents

• Collateral: If seeking secured funding, you may need to provide collateral, such as property or equipment.
• References: Letters of recommendation from clients, suppliers, or business associates.
• Market research: Data and analysis supporting your market analysis and business projections.

Remember, the specific documentation required may vary depending on the type of funding you seek, the lender or investor, and the nature of your business. It’s essential to prepare a thorough and well-organised package to increase your chances of securing the funding you need.

How does Swoop help?

Swoop uses Open Banking technology to help make the funding application process faster, easier and more accurate. 

Open Banking allows Swoop to securely access your financial data, eliminating the need for manual data entry, reducing errors and speeding up the application process. Swoop can verify your financial health directly through bank statements, providing lenders and investors with a more reliable picture of your financial situation and matching you with lenders who offer the most suitable funding options. This saves time and effort for business owners by eliminating the need to apply to multiple lenders.   

Swoop can also analyse spending habits to identify areas where you could potentially save money and offer potential alternative solutions from different providers. 

If you have registered for Swoop, have you also signed up for Open Banking? Click here to find out

Swoop is a business funding and savings platform enabling businesses to discover the right funding solutions across loans, equity and grants, and to identify and easily make savings – all in one fell swoop.

Swoop works with over 1,000 funding providers from mainstream banks, alternative lenders, venture capital funds, angel investors and grant agencies, meaning that whatever your funding requirement, Swoop has a solution that fits.