A Step-By-Step Guide To Small Business Financing

Step 1 — Define the number

Work out the amount from the plan rather than from optimism. Under-funding a project usually costs more than borrowing slightly more at the outset, because the second round arrives under pressure and on worse terms.

Step 2 — Assemble the file

Identification, business details, last three to six months of business bank statements, and a clear description of the use of funds. Tax documents and financial statements may be required for larger or longer-term facilities.

Step 3 — Review your position honestly

Know your credit profile, your average monthly deposits and your existing obligations before anyone else looks at them. Surprises in underwriting cost time; surprises you already know about can be explained up front.

Step 4 — Apply, compare, then decide

Apply once through a partner who can review multiple routes rather than submitting scattered applications. Compare total cost, payment schedule and term together, and choose the structure that your slowest month can carry.

Then complete documentation promptly. Most delays at this stage are simply a missing signature or an outstanding statement.