The 5-step process
Application
One-page form: business, owner, requested amount. Soft pull only.
Documents
3-6 months bank statements, 1-2 years tax returns, personal financial statement, ID.
Offers
2-5 lenders return offers with rate, term, payment, fees. We present the strongest 2-3.
Pick and sign
You pick. Hard pull happens at this step with chosen lender (5-10 pt temp impact).
Funded
Lender finalizes, wires funds. Monthly payments begin next cycle.
Timeline by lender type
- Alternative lender: 2-5 business days from clean application. Lighter underwriting, higher rate. Best for owners who need cash this week.
- Specialty lender (sub-620 FICO): 24-72 hours. Highest rates but fastest access.
- Credit union: 2-4 weeks. Better rates than alt lenders but slower.
- Traditional bank: 2-6 weeks. Lowest rates for qualified files. Most rigorous documentation.
- SBA 7(a): 30-90 days. Cheapest cost-of-capital but slowest process.
What lenders look at
Five inputs decide most outcomes:
- Personal FICO. Biggest single driver. See rates by FICO band.
- Business revenue + bank statement quality. 6-12 months of statements showing consistent deposits and clean activity.
- Time in business. 24+ months opens banks. 12+ for alt lenders. 6+ for specialty.
- Existing debt (UCC filings). Lenders pull UCC search. Active MCAs visible in statements lower limit or rate.
- Industry and use of funds. Some industries restricted. Honest use-of-funds disclosure speeds underwriting.
How to position your file
1. Apply through a broker
Competing offers across 3-5 lenders force rate down 2-5 points typically. Going to one bank in isolation gives them no pricing pressure. Here's how our broker process works.
2. Clean up bank statements 60-90 days first
Zero NSFs in trailing 90 days, deposit count above 5/month, average daily balance above $5,000. Same file with clean statements gets a materially better offer.
3. Pay personal credit card utilization below 30%
Often moves FICO 15-30 points in 30 days. Can shift you from alt-lender pricing to bank pricing on the FICO chart.
4. Disclose existing debt upfront
Lenders find existing MCAs and loans via UCC search anyway. Disclosing upfront routes the file to lenders comfortable with the situation, rather than wasting cycles on lenders who'll decline at underwriting.
Common reasons applications get delayed
- Bank statements not downloaded directly from the bank (screenshots flagged for verification)
- Missing co-owner signatures on application + personal financial statement
- CPA-prepared tax returns not yet e-filed (IRS verification adds 48 hours)
- Active tax lien discovered at underwriting (disclose upfront)
- Application submitted Friday afternoon (Monday queue)
What you can do with the funds
- Equipment or inventory purchases
- Renovating an existing location or expanding to a new one
- Acquisition of another business or partner buyout
- Hiring ramp with measurable productivity gain
- Marketing campaign with measurable CAC
- Refinancing existing higher-cost debt (MCA consolidation, expensive lines of credit)
- Working capital for a known one-time need
The term loan is best when the use is a known dollar amount with a known payback timeline. If the use is unpredictable or ongoing, a line of credit is usually the better tool.