How a tax extension can delay a business loan application

By OLIVIA CHEN of NerdWallet

Filing for a tax extension is sometimes unavoidable. But if you are planning to apply for business financing this year, an extension could cause delays in the underwriting process or paint an inaccurate or out-of-date financial picture of your business. In turn, those issues could keep your business from the financing it needs. Both business and personal taxes for all majority business owners and potential guarantors factor into a business loan application. To avoid a potential delay or disqualification of your loan application, experts recommend maintaining good bookkeeping practices, consulting tax and bookkeeping professionals and planning ahead for business goals.