Organize a Loan Application

Determine which type of loan you need to apply for: Working capital is used to meet immediate, short-term needs (payroll, rent, vendors) that you will repay during the company's next full operating cycle (generally one year).

Growth capital pays for durable investments that create income (a printing press, a building, a fleet of trucks). These loans are generally paid over a period of not more than seven years. If you're seeking investment capital, the lender will expect you to show how you will increase profits sufficiently to repay the loan in the agreed-upon time frame.

Gather the documents you'll need for your loan application. Typically you'll be required to provide a pay stub, an IRS tax return or a W-2 form to prove your income. Pull together bank and 401(k) statements, and of course, any debt and liability documents, such as divorce papers or student-loan statements. You'll need these key documents and information when you apply for a loan:

Check your credit report before you fill out your application, and fix any discrepancies.

Go back two years and show a history of payments (credit card, student loan, utility, car) to lenders.

Make your loan application tidy and orderly. The condition, completeness and appearance of your loan will reflect on you and affect your chances of getting a loan. Information should be typed, spell-checked and carefully proofed. Add a cover letter for professionalism and style points.