Closing stipulations are documents or requirements that are needed to complete and fund a business loan.
They may also be required for other types of transactions but are most often needed for loan, lease and real estate contracts.
Watch: Business Loan Closing Stipulations, at the Top of page! Apply below now or call 919-771-4177. Transcript here
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Closing Stipulations for Business Loans
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, is needed, as well as a final merchant closing call.
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. A Background Check for a business loan is completed. 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.
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. Next, 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.
Finally, if you cannot provide a tax return, there are other funding options.
More closing stipulations required:
Larger business loans, real estate and other asset based loans have more closing stipulations. The higher the dollar amount the more difficult they 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. So what do you do if you cannot provide all the required items?
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.
Negotiate required items and try to get some waived or a substitute document accepted. 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.
K-1’s from your most recent Tax return are accepted as Proof of Ownership.
However, Articles of Incorporation showing shareholder ownership percentage should 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
Show Video Transcript Details
Closing Stipulations for Business Loans
[ race car engines ] Its time to close your business loan now, and get the funds you need. But then the lender sends you a list of closing stipulations they need before you get your money, and you don’t have them. [ desert wind blowing ] Call us for fewer stips and the most help with documents like, proof of ownership, Tax ID and EIN, [ wind blowing ] proof of business address, passing DecisionLogic bank verification. We will get you past all the Hurdles [ motorcycle engines ] and to the Funding Finish Line. [ water bubbling ] Low credit scores OK. Apply at SmallBusinessLoansDepot.com, Or Call: 919-771-4177.