Frequently Asked Questions (FAQ)
At Business Loan Solutions, our primary focus isn’t just loans. It’s about financial education. Armed with good information, you can ask smart questions to a potential lender that can help you decide if they are a good fit and that their recommendations best meet your business and financial needs. So, we have assembled a few frequently asked questions (FAQ) to arm you with the smart questions to ask when evaluating a business loan.
Table of Contents
FAQ: What kind of loan or credit do you recommend for my business needs?
It’s your lender’s job to do an interview to understand the full range of your business needs. As a trusted advisor, they should then recommend a few options along with pros and cons of each solution. In order to take care of the range of business lending needs you might have, your lender should be able to offer a business credit card, a business loan, commercial mortgage and line of credit. Not sure which type of loan works best for your situation? Take our quiz and find out the best options.
FAQ: What documents do I need to gather before I apply?
If you shop across a few lenders, you may find that some require more paperwork or statements than others. Most loan requests will require a personal and business credit inquiry, but lenders can vary on if tax statements are required based on the borrowing amount at the initial application. However, during due diligence, the list of supporting documents can vary based upon the complexity of your loan request. For example, if you need to go to a CPA to get audited financial statements or need an appraisal on property, this extra time should be factored into your cost and schedule to work with the lender. Click here to get a complete list of due diligence documents.
FAQ: What is the time frame to close on a line of credit?
Before applying it’s important to understand how quickly you need funding and if the lender can meet your timeline. Having all your paperwork and documents in order in advance can help streamline the lending process, but if timing is important, ask if there’s anything else you can do to speed up the process.
Once the final due diligence documentation is received from you, the package will be reviewed by our underwriting team. When that step is completed, it is presented to the board for final approval. Assuming all goes well, the line of credit application can be closed in as little as 2 weeks.
FAQ: What are typical rates and closing fees for my type of loan request?
This can be tough question for your lender to answer without completing a personal credit inquiry which is usually part of the actual loan process as well as many other factors. It’s helpful to you know your credit score. Then you can ask for typical rate and fee ranges for someone with your credit profile, borrowing amount and the type loan of you are looking for (i.e, line of credit, term loan or commercial mortgage). Make sure to always have your interest rate provided in APR so you can easily evaluate the loan qualifications.
FAQ: Does the kind of loan you recommend come with any annual or one-time fees?
Nobody like surprise fees. However, there may be additional costs to borrow even after you close the loan. All fees will be disclose prior to closing and require your approval to proceed. But be sure to ask about annual, one-time fees, or up-front fees so you can factor this information into your decision.
FAQ: Are there ways to lower or reduce the interest rate?
Many lenders may offer ways to reduce the interest rate on your loan request. For example, this can include maintaining an active business checking relationship, bringing over business deposits and/or auto-deducting loan payments from a business checking account or some lenders allow you to “buy down” or “lock in” your interest rate for an additional fee prior to closing.
Although, be flexible. Too many business owners have and interest rate in mind but it is lower than what the market will bare. In this scenario, ask our expert advice on how to structure your project or purchase, so the numbers work and the project is successful.
FAQ: Is a personal guarantee required for the loan?
A personal guarantee, or pg a loan, is a fairly common requirement for a business loan and means that you would be personally liable for paying back the loan even if your business is no longer in existence. A lender may consider your personal assets as collateral for your personal loan guarantee, or they may use a general lien against your business assets as a guarantee. Personal guarantee requirements can vary by lender, so be sure to ask your lender about their approach and let them know up front if you do or do not want to offer a personal guarantee.
FAQ: Is a personal guarantee required for the loan?
A personal guarantee, or pg a loan, is a fairly common requirement for a business loan and means that you would be personally liable for paying back the loan even if your business is no longer in existence. A lender may consider your personal assets as collateral for your personal loan guarantee, or they may use a general lien against your business assets as a guarantee. Personal guarantee requirements can vary by lender, so be sure to ask your lender about their approach and let them know up front if you do or do not want to offer a personal guarantee.
FAQ: Do I get ongoing relationship management and support if my loan or business needs change?
Yes and No. Business Loan Solutions offer ongoing business consulting and support for all of our clients. However any loan questions will need to be directed to your lender.
FAQ: Are you an SBA loan preferred lender?
SBA Guaranteed loans can open a wealth of new opportunities for your business but do require additional steps in the closing process. However, not all SBA loans are the same. Because the SBA only guarantees up to 75% of your loan, the lender is the one who determines the terms they are willing to offer you. If the lender you are working with is an SBA Preferred Lender, this means they have the authority to make decisions on behalf of the SBA. Which can help reduce the time to close your loan and get closed more quickly.
FAQ: Do you have customer service?
Of course! Our friendly and knowledgeable customer services reps are available to answer your questions.
See our Customer Satisfaction Guarantee!
Feel free to give us a call at 813-995-9595.