Whether you're applying for a small business loan, a grant, or pitching to investors, being “funding ready” means having your documentation, financials, and story in order. Here's exactly what lenders and funders look for — and how to give it to them.
What Lenders Actually Look For
Banks and lenders want to minimize risk. They're asking one fundamental question: “Will this business pay us back?” To answer that, they evaluate:
- Your ability to repay — shown through cash flow and profitability
- Your business legitimacy — proper structure, documentation, and history
- Your plan — how you'll use the money and how it will help you grow
- Your track record — credit history, business history, industry experience
Documents You'll Need
Most lenders will request some combination of:
Essential Documents
- Business Plan — Your roadmap showing market opportunity, strategy, and projections
- Profit & Loss Statement — At least 12 months of actual financials
- Cash Flow Forecast — Projections for the next 12-24 months
- Balance Sheet — Assets, liabilities, and equity
- Tax Returns — Personal and business (2-3 years if available)
- Business Registration — Articles of Organization, Operating Agreement
How to Present Your Financials
Your numbers tell a story. Make sure it's a good one:
- Be accurate — Lenders will verify. Inconsistencies kill deals.
- Be realistic — Projections should be achievable, not fantasy.
- Show trends — Even if you're not profitable yet, show improvement.
- Explain variances — If something looks off, address it proactively.
Common Mistakes to Avoid
- • Mixing personal and business finances
- • Incomplete or inconsistent records
- • Unrealistic revenue projections
- • Not knowing your numbers when asked
- • Applying without all required documents
Grants vs. Loans
Grants don't require repayment, but they're highly competitive and often have specific criteria (women-owned, minority-owned, specific industries, etc.). Loans are more accessible but require repayment with interest.
The documentation for both is similar, but grants often require a stronger narrative about impact and mission alignment. Know what each funder is looking for and tailor your application accordingly.
Get Funding-Ready Documents
Professional templates designed to meet lender requirements and make your business look credible.
Browse TemplatesThe Bottom Line
Getting funding isn't about luck — it's about preparation. The entrepreneurs who get funded are the ones who can clearly articulate their opportunity, back it up with solid financials, and demonstrate they're a safe bet.
Start preparing your documents now, even if you're not ready to apply yet. When the right opportunity comes, you'll be ready to move fast.