To evaluate these factors, the lender will ask you to complete loan applications and provide some information and documentation. Although the details-the details will differ from each lender to another lender, you may need to give some or all of the following:

Details of loan application:

v Why do you want a loan
v How big is the required loan
v How the money will be used
v The amount of time required to repay the loan
v Debt other business whatever your responsibility

Business plan
This includes business overview, description of products and services, marketing projections (and how you plan to achieve goals), summary of the principles of doing business, and financial projections.

Legal Documents
Business licensing, incorporation documents, patents, commercial leases, franchise agreements, or other legal binding documents that relate to your business.

The financial statements
Income statements and debt accounts for businesses and the running.

Tax Returns
Both personal and business tax returns from past three years may be required.

Credit Reports
Creditors also need a good credit report for business (if already established) and personal credit reports for (its) owner.

Guarantee
Collateral is something valuable that can be used to repay the loan if the company fails to repay the loan. Something precious will be sold by the lender if the company can not pay off the loan. It might be inventory, equipment, bank accounts, or even a place to live
You.

By collecting all information and documents above before you make an approach to creditors, you will be helped to get loans more quickly. It also will help you get a clearer view about the needs of your business and the company’s ability to repay the loan.

After World War I, there are financial accounting rules that have reduced the impact of accounting information is useful for evaluating the performance of subordinates in a large company (lost relevance). Until the 1920s, all the managers believe the information related to primary production processes, transactions and events that generate a nominal amount of the financial statements. After the year 1925, the information used by managers to be more simple and more manufacturing companies in the United States have developed management accounting procedure known as now.

During more than sixty years, accounting academics trying to restore the relevance of accounting information with the boarding of financial accounting information. The business will use a simple manufacturing model, similar to the 19th century textile companies, and in order to overcome production problems, academics reorder supplies kos reporting information. Nevertheless, the model is too simple to explain the real problems faced by managers but it is conditioned in order to facilitate the boarding of how information derived from financial statements can be made relevant to the decision-making.

Beginning in the 1980s until now, management accounting experience a rapid period of development with its role as co-financial accounting. Johnson and Kaplan write beautifully in the “Relevance Lost: The Rise and Fall of Management Accounting”. The book is good enough to read to understand about management accounting.