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14 Top Closing Stipulations for Business Loans

Closing stipulations  are documents or requirements that are needed to complete and fund a business loan.  The may also be required for other types of transactions but are most often needed for loan, lease and real estate contracts.
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Learn examples of closing requirements often required.

1. Proof of Income.
2. Copy of Business License or Articles of Incorporation
3.  Proof of Ownership of the business.   Proof of business ownership percentage if multiple owners.
4. ID such as a copy of current driver’s license.
5. Copy of voided business check.
6. Bank Verification using secure vendors to pass a DecisionLogic check, or Join me.
Sometimes direct bank login info is requested.   A final merchant closing call 
is often required.   7. Acceptable account activity in the last 90 days.   The current balance may
need to be a multiple of the required payment.   For example, an mca cash
advance may require three times the daily payment in the account at the
time of closing.   Excessive overdrafts and NSF’s may cause a late decline.
8.   Most recent year business tax return.
9. Background Check for business loan may be done.   The lender will do a background check on you personally.
10.   Payoff letter from another lender.
11.  Proof of your business address or business location
12.  Proof of Insurance.
13. Landlord contact information.
14. A landlord waiver signed by your landlord may be required.   This is for  businesses that lease or rent a space.

FAQ Frequently asked questions on closing stipulations for a business loan

Do you have a lot of closing requirements?

Our programs have the fewest number of closing stipulations and items required for closing. Any requirements are items you can easily get to close the loan.

Can I still get funding if I don’t have all closing items?

Yes. Any items you do not have might be waived. Otherwise we can qualify you into a program that does not require certain closing documents you may not have.

What are the closing stipulations for a business loan?

Closing stipulations are documents required to close the transaction and be funded. They usually are identification, proof of ownership, and verification of accounts. Sometimes proof of business location or address may be requested. Our expert staff will assist you to quickly get through this process.

Stipulations that happen automatically

Some stipulations such as the lender putting a UCC blanket lien or more standard UCC lien on your business happen automatically.   Review your contract to know exactly how the lender will file the UCC lien and on what.

You cannot provide closing items required to complete a business loan and need another option.   Click on the links above that match what you cannot provide.
If you cannot provide a tax return, there are other options.   We can
provide financing options without the many stipulations required by others.

More closing stipulations required:

More closing stipulations are required for larger business loans, real estate loans and other asset based loan. The higher the dollar amount the more difficult the stipulations may be to provide.

To prevent fraud, many lenders are doing a business loan closing call.   They talk to the borrower to confirm the request.

Did you know?

Many customers cannot provide all items required to complete a transaction.   What do you do if you cannot provide all the required items?

Loan Stipulations for closing transactions such as Business Loans, business contracts and Real Estate Transactions

Call the lender and discuss.   Explain why you cannot provide what they are asking for and ask if there are substitute items you can provide in place of what they are asking for.    Required items can probably be negotiated or waived.   This may not apply to a large business loan and real estate backed loan that are heavily regulated.

Examples of negotiating or waiving stipulations

For example, a requirement may be last years tax return but you do not have  last years tax return due to filing an extension.    Request providing proof of filing an extension instead.   Another option is also to request waiver of the tax return altogether.

Providing Proof of Ownership.   For proof of ownership, K-1’s from a Tax return are usually listed in the Stipulations.   Articles of Incorporation showing shareholder ownership percentage may be accepted in place of a K-1.  Providing a copy of a business license with the Owners name on it.

Recent example from the Web:

Including a long list of many other types of
Loan Stipulations