Frequently Asked Questions

We work with businesses across all major industries and structures (LLC, S-Corp, C-Corp, sole proprietorship). Qualification criteria vary by lender and product type, but generally include minimum revenue thresholds, time in business requirements, and creditworthiness standards. Our advisors assess your specific situation to identify appropriate options.

Credit requirements vary significantly by lender type. Traditional bank products typically require personal credit scores of 680 or higher. Alternative lenders may approve businesses with scores as low as 600, though rates increase as credit quality decreases. We evaluate your complete profile—not just credit score—to identify aligned lenders.

Not always. Profitability requirements depend on the lender category and product type. Traditional banks typically require demonstrable profitability, while alternative lenders focus more on revenue trends and cash flow patterns. Asset-based lenders prioritize collateral quality over profit margins.

Available capital ranges from $10,000 to $5 million or more, depending on product type, business financial strength, and lender appetite. Our advisors help determine appropriate loan amounts based on your stated needs, debt service capacity, and collateral availability.

Newer businesses (under 2 years) and seasonal operations face additional qualification hurdles with traditional banks, but alternative lenders often accommodate these profiles. Approval likelihood and terms depend on revenue consistency, owner equity investment, industry type, and available collateral.

Yes. Existing debt doesn't automatically disqualify you, but it affects debt service coverage ratios and available borrowing capacity. Lenders evaluate your ability to service total debt obligations—existing plus requested—based on cash flow. In some cases, debt consolidation or refinancing may be appropriate.

Basic application requirements include: business tax returns (2 years), personal tax returns for owners with 20%+ ownership, year-to-date profit & loss statement, balance sheet, and bank statements (3-6 months). Additional documentation may be requested depending on product type and lender requirements.

Funding timelines vary by product type and lender category. Alternative lenders often fund within 3-7 business days after approval. Traditional bank term loans typically require 2-3 weeks. SBA loans generally take 4-6 weeks due to government guarantee processing. Urgency affects available options—starting earlier preserves more choices.

Yes. Initial application review and advisor evaluation occur without affecting your credit. Soft credit inquiries (no score impact) may be conducted during pre-qualification. Hard credit inquiries only occur when you authorize proceeding with specific lender applications after reviewing terms.

Your assigned advisor evaluates your business profile against lender underwriting criteria, assesses documentation completeness, identifies potential qualification gaps, and determines strategic lender alignment. You'll receive feedback on positioning recommendations and expected approval likelihood before external lender outreach.

No. We use targeted lender outreach rather than mass distribution. Your advisor identifies 2-4 lenders aligned with your profile and submits requests sequentially or in small batches. This approach reduces credit inquiry impact and allows for positioning adjustments between submissions.

Denial from one lender doesn't end the process. Your advisor evaluates the decline reasoning, adjusts positioning if needed, and routes to alternative lenders with different underwriting criteria. Many businesses declined by banks qualify with alternative lenders, though terms and rates differ.

Traditional banks offer lower interest rates (typically 6-10%) but maintain stricter qualification criteria, require strong credit profiles, and follow longer approval timelines. Non-bank lenders provide faster decisions with more flexible underwriting but charge higher rates (typically 10-30%). Both have appropriate use cases depending on your situation.

Rates vary widely based on lender type, creditworthiness, collateral, and loan structure. Bank term loans: 6-10%. SBA loans: 7-11%. Alternative term loans: 12-25%. Short-term working capital: 15-35%. Your advisor provides rate expectations specific to your profile during the initial review.

An origination fee is a one-time charge assessed by the lender at closing, typically 1-5% of the loan amount. This fee covers underwriting, processing, and administrative costs. Origination fees are disclosed in the loan offer and are either deducted from proceeds or added to the financed amount.

Repayment terms range from 3 months to 25 years depending on product type and use of proceeds. Working capital loans: 3-18 months. Equipment financing: 2-7 years. Commercial real estate: 5-25 years. SBA 7(a) loans: up to 10 years (equipment) or 25 years (real estate). Term length affects monthly payment size and total interest cost.

A personal guarantee makes business owners with 20%+ ownership personally liable for loan repayment if the business defaults. Most business financing requires personal guarantees. This means lenders can pursue personal assets if business assets are insufficient to satisfy the debt obligation.

Collateral requirements vary by lender and loan type. SBA and bank loans typically require collateral coverage (equipment, real estate, inventory, receivables). Alternative lenders may offer unsecured options for well-qualified businesses, though rates are higher. Asset-based lenders require specific collateral (receivables, inventory) as primary repayment source.

Prepayment terms vary by lender. Some loans allow early payoff without penalty. Others impose prepayment penalties (typically declining percentage over time) to compensate lenders for lost interest income. Prepayment terms are disclosed in loan documents and should be evaluated if you anticipate early payoff.

The initial application and advisor review process does not impact your credit. Soft credit inquiries (used for pre-qualification) do not affect credit scores. Hard credit inquiries occur only when you authorize proceeding with specific lender applications, and these may temporarily reduce your score by a few points.

All data is transmitted using 256-bit SSL encryption and stored in SOC 2 compliant infrastructure. We do not sell, rent, or share your information with third parties except lenders you authorize us to contact. Access to your financial data is restricted to assigned advisors and necessary operational personnel.

Your application is reviewed by your assigned BestLoanUSA advisor and shared only with lenders you authorize. We do not broadcast applications to our full lender network. Targeted lender outreach means 2-4 lenders typically review your request, rather than dozens.

Yes. Your advisor recommends specific lenders based on profile alignment, but you approve lender outreach before it occurs. You can decline specific lender recommendations and request alternatives. No lender receives your information without your authorization.

Your data remains in our secure systems and is not shared with additional parties. You can request data deletion at any time by contacting our privacy team. Lenders who reviewed your application maintain their own records per their data retention policies.

Yes. Each financing request is assigned to an experienced advisor who reviews your profile, communicates throughout the process, and coordinates lender outreach. Your advisor serves as your primary point of contact and can answer questions about positioning, lender feedback, and next steps.

Yes. You can schedule a consultation to discuss your financing needs, timing considerations, and general qualification outlook before submitting a formal application. Consultations help clarify whether our platform aligns with your situation and set appropriate expectations.

Your advisor provides guidance on documentation requirements and can identify gaps that may affect approval likelihood. While we don't prepare financial statements or tax returns, we explain what lenders look for and how to present your financial position effectively.

After accepting an offer, you work directly with the lender to finalize documentation, satisfy any remaining conditions (insurance certificates, legal filings, additional verification), and schedule funding. Your BestLoanUSA advisor remains available to answer process questions until funding closes.

Yes. If your initial application doesn't result in approval or acceptable terms, you can reapply once your situation improves (higher revenue, better credit, reduced existing debt, additional collateral). Your advisor can outline what changes would most improve approval likelihood.