A Checklist of the Documentation Required for Microloan Application

 

Microloan pic
Microloan
Image: investopedia.com

Having held leadership roles with several Venezuelan financial institutions, Julio M. Herrera Velutini currently serves as chairman of the board with an international bank based in Puerto Rico. With extensive experience in the financial industry, Julio Herrera Velutini assists a diverse range of clients, including those in need of microfinancing options such as microcredit and microloans.

Here is a checklist of what a borrower need to provide a microlender when applying for a microloan.

1. Government identification. The potential borrower must present a taxpayer ID number or Social Security number with the application.

2. Proof of income and financial statements. Clients must explain the financial activities of their business and may also be required to provide documents such as tax returns, QuickBooks statements, or profit-and-loss records.

3. Business plan. An owner of a new business must provide a specific business plan and projected cash flow.

4. Demonstrated investment. Business owners must explain their investment in the business, including hours spent working and cash expenditures.

5. References. Some loan applications require professional and personal references.

6. Collateral. Business and personal assets may be used for securing the loan.

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