in , ,

Small Business Loans – What You Must Know Before Applying For One

small business loans


Small business loans can be used for a variety of reasons. You can borrow money to start a new business, you can bring money into your existing business or you can buy a business. However, before you apply for any type of loan, there are certain things that you must know.


Credibly is a small business lending platform that has partnered with Alostar Bank of Commerce, Flexpoint Ford and CapitalSource. They offer a variety of different financing options, from working capital loans to merchant cash advances.

The company uses a variety of different technology platforms to evaluate a business’s health. This can include their cash flow, credit history, and current bank statements. The results of the review are used to make a funding offer. The amount is based on a business’s unique review and will be deposited into the business’s account within a few hours.

The company’s website doesn’t provide much information about the other financing products they offer. They do, however, offer a blog and a FinTech Fireside video series. The latter is a series of conversations with financial experts about various aspects of the financial industry.

The company has a streamlined application process, which should speed up the loan process. To begin the process, applicants simply fill out a short online form. Once submitted, the Credibly team will contact the applicant to determine their eligibility for a loan. They will also contact the business to collect pertinent information.

The application process should take about four hours. During that time, the Credibly team will also review the business’s recent bank statements and self-reported data. If the applicant qualifies for a loan, the funds will be deposited into the business’s bank account the same day.


Lendio is the largest small business loan marketplace in the country. With more than 75 lenders, borrowers have the chance to choose from a wide range of options. They can choose from short-term loans, lines of credit, and accounts receivable financing.

Getting a Lendio business loan is as easy as filling out an online application. After you create an account, Lendio will run a soft credit check. This means your credit will not be affected, even if you do not qualify for a loan. You will also be matched with suitable lenders.

After completing the application, you will receive a list of offers from multiple lenders. Each offer includes a detailed description. After comparing the options, you can choose the best loan option for you. Once you have a choice, you can finalize the loan by signing the paperwork.

In addition to providing access to hundreds of lenders, Lendio also offers helpful customer support. You can contact them via phone, email, or social media. This helps to reduce the amount of time spent on the application process. You can find answers to common questions in the FAQ section of the website.

Lendio also provides a loan calculator. This tool is one of the most accurate on the market. Applicants can use it to calculate monthly payments, annual percentage rates, and more. These figures are useful when calculating your eligibility for a loan.


OnDeck offers small business loans, lines of credit, and term loans. They are a viable option for new and established businesses that need capital for startup and operating costs. But, before applying for an OnDeck loan, it’s important to know which requirements you’ll need to meet.

The OnDeck application process is relatively straightforward. They require some basic information about your business. They also ask you to share your last three months of bank statements. You may be asked to provide your social security number, business tax ID, or driver’s license number. They will use these pieces of information to determine whether you qualify for a small business loan.

OnDeck also makes it easy for you to understand the cost of your loan. They offer a prepayment benefit option, which waives the interest if you pay off your loan in full by the end of its term. They also let you know that a business credit score is not the only consideration for a small business loan.

OnDeck has an A+ rating from the Better Business Bureau. They also have a number of great online reviews. However, they do not work with businesses that have had a business dissolution for more than two years.

OnDeck small business loans are typically more expensive than those offered by most banks. This is because they are designed to help with ongoing cash flow. They also have a relatively short repayment period.


Kiva is an international non-profit organization that provides access to small business loans to entrepreneurs in underserved communities. By connecting lenders from around the world with local businesses, Kiva aims to promote economic growth and build community wealth.

To apply for a Kiva loan, you will need to fill out an online application. Then, you will be contacted several times throughout the application process. During this time, you will be asked to complete a variety of questions about your business.

After you are approved, you will receive your funds via PayPal. Your repayments are due monthly. The amount you pay will depend on how much you borrow. If you opt for a lower monthly payment, you will be able to pay off your loan more quickly.

Kiva is an ideal option for small businesses that need financing for a short period of time. It is also a great way to connect with other businesses from across the world.

However, applying for a Kiva loan is a long and cumbersome process. It can take up to two months to process. This means you may not be able to use your funds right away.

Besides being cumbersome to process, the application process can be confusing. You will need to provide official government documents. You will also need to provide a business description, including information about your goals, your budget, and your staff.

Financial covenants and personal guarantees

When applying for a small business loan, it is important to understand what financial covenants and personal guarantees are. Understanding them will allow you to avoid violating them, which can result in serious consequences.

Personal guarantees are a way for lenders to protect themselves against a borrower’s inability to repay the loan. They are often used as an alternative to loan covenants. In a standard loan, a guarantor must submit an updated financial statement and tax returns on a yearly basis.

The lender can also hold a guarantor liable for any unpaid balance on the loan. If a guarantor cannot repay the loan, they may be forced to file bankruptcy and lose their personal assets.

A personal guarantee for a business loan is an agreement that the owner of the company will repay the balance of the loan personally. These are generally required for traditional loans, but can be negotiated on a case-by-case basis.

In the event of a breach, a lender will impose penalties and restrictions on the borrower. This can include a reduction in the credit limit or a lowering of the interest rate.

In addition to financial covenants, a business loan might require a personal guarantee, which is a promise by the business owner to pay off the loan if the company goes out of business. The personal guarantee can be an individual or a percentage of the ownership of the business.

Customer support options

Small business owners who are looking for the best way to boost their bottom line should take a close look at customer support options. The good news is that many of these solutions are free or relatively inexpensive, allowing you to spend your cash on improving your operations and attracting new customers. In fact, you might want to set up a dedicated phone line or two for your most loyal customers. In addition, you can leverage real time data to better understand your customer base and improve your overall customer service experience.

The following customer support options should be on your radar if you’re looking to grow your business: Zoho Desk (free or otherwise), Help Scout (starting at $20 per month), or a combination of the above. While your choice of software will determine the best fit, it is imperative that you choose wisely. The software mentioned below will provide a streamlined process to manage your support needs. These types of solutions are designed to streamline the most mundane tasks and give you a leg up on the competition.

The software also comes with robust ticket tracking and performance reporting. While you may not have a lot of time on your hands, you can easily monitor your ticket activity and make real time decisions based on customer feedback and data. These tools are an essential part of any modern day business, and will pay off in the long run.

Check out more about small business loans

What do you think?

26 Points
Upvote Downvote
Business Lawyer

What Can a Business Lawyer Help You With?

Student Loan

Which Student Loan is Right For You?