How do small business loans work?
The process of applying for a small business loan may be overwhelming. However, at some point, our financial situations may prompt us to undergo the tedious process of applying for a small business loan. Let’s begin by overviewing the typical steps you’ll have to go through during the loan application process. Then, we’ll detail what each of the steps within the process looks like so you can be better prepared.
Below are the typical steps involved in a small business loan approval as enumerated by the Small Business Administration:
1. Submit Application:
The business owner/applicant must complete and submit the lender’s loan application.
2. Lender Completes Application and Credit Review:
The lender will review the application, check the business’s credit report, and approve the loan. If you don’t meet the lender’s business or personal credit score requirements, you may be disqualified.
3. Lender Prepares Loan Offer:
The loan provider will prepare the loan documents.
4. Loan Offer Finalized:
Once any terms and conditions of the loan authorization are satisfied, the loan will be closed.
5. Loan Given to Borrower:
The loan proceeds will be disbursed based on agreed-upon terms and conditions.
6. Borrower Pays Off the Loan:
Throughout the life of the loan, the borrower will make payments as agreed.
7. Once Balance Is Paid Off, The Loan Process Is Complete:
When the loan is paid back in full, the liens of collateral will be released, and the note will be marked as paid.
Hence, depending on the loan that you are applying for, other financial institutions may require you additional documentation. You might as well want to consider getting a cash funding from Kayamo. With just a valid ID and completed form, you’re good to go! Start applying now at www.kayamo.ph.