The stages of a Union City, TN business funding request: what partners may require, which documents to gather, how underwriting runs, what an owner can ask about a FICO SBSS score and which bank statements and tax returns a partner may ask for.
Time Open, Revenue, Credit and a Stated Use: the Small Business Loan Requirements a Partner Sets
Each funding partner sets its own requirements, and this site lists no minimums of its own. A request reads more clearly when the owner can state these clearly:
- The number of years the business has run under the present owners.
- Yearly revenue, as shown on the latest return or in the deposits.
- Personal credit history, since a partner may run a check.
- What the money pays for and how much is needed, down to the quote or invoice.
- What the business already pays each month toward other loans, leases or advances.
- For secured products, the equipment, stock or receivables that would back the funding.
Time in business, annual revenue and the amount are also what the request form asks about.
A Janitorial Contract at the Center of a Small Business Loan Documents File
The file depends on the product and the partner. For an invented janitorial company asking for funding to staff a new building contract, a partner may ask for some or all of these:
- The signed contract or award letter, showing the monthly amount and the start date.
- Business bank statements for recent months, where the deposits from current contracts show up.
- Last year's filed business return, with each owner's personal return.
- Income and expenses for the current year to date, from the books.
- Papers showing how the business is organized, plus photo ID for every owner.
The request form itself takes no documents. County Business Patterns counted 36 establishments in Obion County, TN in administrative and support and waste management and remediation services, the sector janitorial firms belong to, in 2023.
Business Loan Underwriting, Stage by Stage, Once a Union City, TN Request Goes Out
After a request is sent, it moves through these stages. Any of them can end in a decline:
- The owner phones, or sends the request form, naming the sum and its purpose.
- Larkwood Lenders talks through the cost with the owner and which of the six products fits it.
- A funding partner with that product receives the request.
- The partner reviews it and may ask for the records above and check credit.
- If the partner makes an offer, it states the amount, payment, term and total cost in writing.
- The owner compares any offer with other options and decides.
The decision at stage four belongs to the partner, not to Larkwood Lenders. The business loans overview describes the six products a request can be matched to.
Asking a Funding Partner About a Business Credit Score, From Union City, TN
The FICO SBSS score, from FICO's Small Business Scoring Service, is a business score on a 0 to 300 scale, kept apart from the owner's personal credit score.
Larkwood Lenders does not pull or see it. During a funding partner's review, an owner can ask whether the partner uses an SBSS score or another business score, and which one it pulled.
Which Months of Bank Records and Which Years of Returns a Partner May Ask For
A partner may ask for several months of business bank statements; how many depends on the partner and the product. It may compare the deposits with the revenue the owner gave, and with the revenue on the tax return.
For returns, a partner may ask for the latest one or two years of business returns, and personal returns for each owner. If the latest return has not been filed yet, say so up front and offer the year-to-date figures instead. The business loan FAQ covers credit checks and EINs.
By Larkwood Lenders · Updated
