Documents required to request a commercial lending in Vietnam

The request for a commercial lending is made during an interview with a lending institution. During this interview, the professional who wants to borrow must submit his complete application file. The goal for the borrower is to prove that he has a promising project, in turn convincing the bank to lend him money.

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4 Important things to know about commercial lending in Vietnam

Convincing banks to lend money is not easy. A promising project with persuasive arguments and a strong record are necessary.

Each project is different (business creation, business recovery, etc.) and therefore it requires proper supporting documents.

There are nevertheless a number of documents common to all cases:

• A presentation of the project;
• Use of loan;
• Basic personal information (ID, name, address etc.);
• Basic business information and permits (entity type, employer identification number);
• Statute of the company or business plan (summary of the business and its products and service, experience of the management team, competitive environment, target market, financial statements) if it is a business creation; and
• Proof of Business Registration.

Then there are other documents which are required by most lenders:

• Personal credit score;
• Business credit score;
• Bank statements;
• Profit and loss statement;
• Cash flow statement;
• Business debt schedule (provides lenders with insights into how the borrower is paying off, or is planning to pay off its existing debts);
• Two years of tax returns (personal & business); and
• Collateral documentation. [1] [2]

Note: In case of refusal of loan, it is possible to ask the bankers their reasons, and then resubmit a new file at the same bank for their reconsideration.

[1] Mereditch Turits, « Commercial loan documentation checklist: Everything you need to apply », Fundera.com.

[2] Ravinder Kapur « Business loan requirements: A complete checklist of documents », Caminofinancial.com.