The small business loan application process can be daunting if you don’t know what to expect. Whether you’re looking for a term loan, line of credit or something more like a flex-pay product, the basic process is similar across them all. Let’s review each step to provide a better understanding.
Preparing your small business documentation
All small business application processes require certain documentation. These requirements will vary per lender. For example, you may need to only supply proof of identity and business bank statements to verify your current monthly revenue and deposit volume at first. But as the application progresses, you will also need to provide additional other business-related documents like tax returns, so make sure you have everything easily on hand.
Submitting the application
Applications for small business financing can run the gamut from simple to very complex. PHAZIS Funding’s online application only takes a few minutes to complete! You will need to provide basic details on your business, how much funding you’re seeking, and your general plans for the funds.
Small business application review
Once your application is received, a representative will reach out to ask some additional questions or request further documentation. Reps should use this time to ask about your business and understand your distinct needs. This allows them to provide guidance on the best loan product and amount, which may be different from what you originally requested.
Receiving a small business financing offer
After you finalize your financing details and provide the needed paperwork, your loan will go through an underwriting process. This is done to ensure your small business is adequately equipped to pay back the debt. Key evaluation factors will include your credit history and the overall financial health of your business. If approved for funding, you could receive offers from more than one lender with varying amounts and terms to consider.
FinaliPHAZIS your small business funding
Once you select the best offer for your small business, you will need to sign the appropriate legal agreements. Then, in order to officially accept the funds, there will be a brief closing call to confirm all the loan details and inform you about important aspects of the agreement you are entering into. After the call, funds are sent via wire to your business bank account.
Alternative financial providers, like PHAZIS Funding, can complete all these steps in just a couple of business days, allowing you to get back to focusing on your business. Loans with traditional banks typically take much longer. This is a primary reason many small business owners are turning to companies like PHAZIS Funding when they need quick access to capital to support their small business growth plans.