The 4 phases of every small business funding deal
Whether you are getting an MCA in 24 hours or an SBA loan in 90 days, the structure is the same four phases. The difference between products is how long each phase takes and how much detail is required.
Application
You submit basic business info, owner info, and the requested amount. Documents range from a one-page form (MCA) to a full document package (SBA).
Underwriting
Lender reviews credit, bank statements, tax returns, and use of funds. Decides whether to offer and at what price. Takes hours to weeks depending on product.
Offer
Lender returns terms in writing: amount, rate (factor or APR), term, payment schedule, fees. You accept, decline, or counter.
Funding
You sign final documents (electronic signature for most products). Lender wires funds to your business bank account. Repayment schedule begins.
Timeline by product
What lenders actually look at
Across all 7 products, five inputs decide most outcomes. The relative weight changes by product.
1. Personal credit score (FICO)
Range from 500 minimum (MCA) to 680+ (SBA). Lenders pull personal credit for the owner-guarantor. Soft pull at broker stage, sometimes hard pull at final approval. We tell you which lenders do which.
2. Business revenue and consistency
Bank statements show monthly deposit volume, deposit count, ending balances, and NSF activity. Tax returns show actual taxable revenue. MCA lenders prefer bank statements; SBA prefers tax returns; everyone wants to see consistent or growing revenue.
3. Time in business
Most products want 6 to 12 months minimum. MCAs go down to 3 months for very strong files. SBA wants 24 months and 2 years of tax returns.
4. Industry and use of funds
Some industries are restricted (cannabis, adult, debt collection). Use of funds drives product fit (equipment purchase opens equipment financing; ongoing working capital opens lines of credit). Honest use-of-funds disclosure speeds underwriting.
5. Existing debt
Lenders pull UCC filings and look at bank statements for existing daily ACH debits. Active MCAs stacked on top of each other are a major underwriting concern. Consolidation first, new positions second, in that order.
Where the broker model fits
You can apply directly to one lender or through a broker that submits to many. The broker model has three concrete advantages: (1) one application instead of multiple, (2) one soft credit pull instead of multiple hard pulls, (3) competing offers force pricing down. The broker is paid by the funding lender at close, not by you, so the service is free to the borrower.
The trade-off: if you have a specific relationship with a specific lender (a bank you've been with for 10 years), the broker may not have access to that exact lender. We work with 50+ lenders across all 7 products; many community banks operate outside the broker network. Read our broker page for the full mechanics.
What happens after you fund
Repayment begins the next business day (MCA, daily/weekly ACH) or the next calendar month (term loan, LOC, equipment, SBA, monthly ACH). The lender becomes your servicer: send payoff letters on request, handle payment-date changes, process renewals when you're eligible.
Things owners often don't expect:
- UCC filing. Most non-MCA business funding products file a UCC-1 on your receivables. It's not a lien on assets, it's a public notice of the lender's interest. Lenders see it in future credit pulls.
- Personal guarantee enforcement. If the business defaults, the personal guarantee gives the lender recourse against your personal assets. Most products require a PG even when described as "business funding."
- Prepayment economics. MCAs have no real prepayment discount because the cost is factor-rate-based, not APR-based. Term loans and SBA loans usually have prepayment penalties in years 1-3. Equipment financing usually allows prepayment without penalty.
- Renewal pressure. Most MCA borrowers renew at end of term, often because the daily payments end and the cash flow improvement feels like a windfall. Renew strategically, not reflexively.