Online Business Loan Application Process Made Simple
Apply for a business loan online
It’s never been an easier time to see if you qualify for business funding. At the click of a button you can have multiple lenders and banks fighting to give you the best loan terms possible. A business loan application can usually be filled out online without having to go to a lender in person.
What information do lenders need in my application?
Surprisingly most applications are quite simple, limited to one page of your business information. Most loans require a personal guarantee so right off the bat it’s quite common for business owners to provide their social security number. This is especially true if you are applying for a working capital loan that’s not collateralized.
Here’s a short list of the typical required information on most applications:
- Business Name
- Business Address
- Gross Annual Sales
- Owner/Officer Name, Date of Birth, Phone, Address, Social Security
- Business Federal Tax ID#
Will it hurt my credit?
Short answer is: No. Most lender applications will start the process with a soft credit pull that does not ding your credit score. If an underwriter feels your profile meets basic requirements, and you are further interested in pursuing the loan, a more in depth credit analysis will take place.
However, some lenders will do a hard pull of your credit, which will be reported. Unless you are having your personal credit pulled many times in a short period of time, you shouldn’t see an impact on your credit. Pulling your credit report is a natural and necessary process for acquiring any financing.
How long will it take to process my loan application?
Obviously it depends on what kind of financing options you are looking into and what financial institution you are looking to secure funding from. Getting a loan from the bank can take weeks or even and then ultimately amount to not getting approved. However, if you apply with a direct lender you could get an approval in as little 24-48 hours with funds in your business bank account within 2-5 business days.
If you’re like most business owners waiting for the bank to come through with a line of credit or loan application, it might be in your interest to see if a direct lender can get you the funding you need for your business much quicker. It doesn’t hurt to know all the options out there.
Is there anything else I should consider before filling out an online business loan application?
Most business loan applications weigh business revenue much higher than personal credit. Therefore, don’t be afraid to submit an application online just because you’re afraid of not getting approved based on credit. You might be surprised to learn that many lenders can get funding for your business with a credit score as low as 500.
Make sure to submit all of your business bank statements for the last 6-12 months and the most recent tax return. This information will be vital in determining whether your application will be approved and what the funding amount will be.