How to Correct Errors on Your Business Loan Application

Depending on the type of errors made on your business loan application, the process to correct them will vary. Some errors are minor and may be immediately and easily corrected. Others, on the other hand, will affect the approval process of the loan. In this case, the application may need to be entirely withdrawn and resubmitted.

Examples of Minor Errors

Minor errors are those that have no impact on whether you will be approved for the loan. Examples include:

  • Address or contact information - If you misquote your business address or contact information, you should be able to easily fix the problem. These elements are subject to change during the life of the loan.
  • Dates and other details - You may have been asked to include dates of previous loans you have held and when they were paid off. While it is best to make this information as accurate as possible, your lender will be verifying this against your credit report regardless. If your date was close enough for the lender to verify the information, you may find this is not an issue at all.

Correcting Minor Errors

You should call your potential lender to notify them you will need to correct an error on the application. Then, submit a detailed addendum to the contract to correct the error. The main concern is your error will reflect poorly on your professionalism. To negate this potential factor, be as professional as possible when you correct the error. Make all corrections at one time, and submit each in writing.

Examples of Crucial Errors

Crucial errors are any missteps that actually affect your ability to achieve the loan. Whether you made these errors accidentally or not, they can be interpreted as fraud. Your potential lender will reject your application if they discover you have erred on crucial information because it reflects dishonesty.

  • Tax payer identification number - Entering the wrong tax identification number is similar to entering the incorrect social security number: it is identity fraud. If your tax number was incorrect on a formal application for a loan, you may be charged criminally in the most extreme situation.
  • Financial balance sheets - Submitting false balance sheets is again cause for accusations of fraud. These balance sheets will be a primary criterion your loan is evaluated against, and they must be 100% accurate for the lender's protection.

Correcting Crucial Errors

If you discover any of these errors, you will need to withdraw the application immediately. Discovering them early enough may allow you to withdraw the application before processing. In this case, you can typically resubmit the application easily. If you discover the error after the application has been processed, you will need to take steps to avoid any criminal consequences.

Commit to writing a statement showing this was indeed an error and not a false statement. Next, contact the lender and express this statement. The lender may allow your business to cancel the loan. To protect the directors and officers of your company from accusations of fraud, it is advisable to contact your corporate attorney for assistance in handling this process.