Funding Readiness Toolkit

Learn how to prepare your business for funding opportunities, lender reviews, and investor conversations.

1Part 1: Business Foundation Requirements

• Business entity formed (LLC, Corp, Nonprofit) — lenders require this
• EIN obtained from the IRS
• Business bank account open and active (minimum 3 months history preferred)
• Business address established (not a P.O. Box for most lenders)
• Business phone number (separate from personal)
• Professional website and email address

2Part 2: Financial Documents to Prepare

• 3–6 months business bank statements
• 2 years personal tax returns (1040)
• 2 years business tax returns (if applicable)
• Year-to-date Profit & Loss Statement (P&L)
• Current Balance Sheet
• Accounts Receivable / Payable aging report (if applicable)

3Part 3: Credit Profile Assessment

• Check personal credit score (aim for 680+ for most programs)
• Review personal credit report at AnnualCreditReport.com
• Dispute any errors on personal credit report
• Check business credit score at Nav.com (Paydex, Experian Business)
• Pay down revolving balances below 30% utilization
• Ensure no outstanding judgments, liens, or bankruptcies (or be ready to explain)

4Part 4: Revenue & Cash Flow Requirements

• Document your average monthly deposits (lenders want to see consistent cash flow)
• Identify your average monthly revenue (most lenders require $10K+ monthly)
• Calculate your monthly fixed expenses vs. revenue ratio
• Demonstrate 6+ months in business (for most conventional programs)
• Understand your Debt Service Coverage Ratio (DSCR) for real estate

5Part 5: Business Plan Essentials

• Executive Summary (1 page overview of your business and goals)
• Business description and model
• Market analysis (who are your customers and competitors)
• Products and services offered
• Financial projections (12–36 months)
• Use of funds (how will you use the loan/investment)
• Management team bios

6Part 6: Real Estate Funding Checklist

• Property address and type
• Estimated property value / appraisal
• Purchase price or refinance amount
• Down payment available (typically 20–30% for investment properties)
• Rent roll or projected rental income
• Current leases (for refinances)
• Environmental reports if commercial

7Part 7: SBA & Government Loan Preparation

• Confirm business is for-profit (SBA 7a requirement)
• Document business size meets SBA small business standards
• Prepare Form 1919 (SBA Borrower Information Form)
• Prepare 3 years tax returns
• Provide collateral list (assets you own)
• Business plan with detailed financials

8Part 8: Key Questions Lenders Ask

• How long have you been in business?
• What is your annual gross revenue?
• What is the purpose of the funding?
• How will you repay the loan?
• What collateral do you have?
• Do you have any outstanding debt?
• Are you current on all tax obligations?