Plenty of small business owners consider getting a small business loan, but many worry the process might be time-consuming, frustrating, and all for naught. However, taking the time to apply for fast working capital loans can pay off, especially for smaller entities.
According to research documented in the Federal Reserve Banks’ 2019 Small Business Credit Survey, only 9% of small companies that applied for small business loans heard “no.” With those odds, you might want to consider applying for a working capital loan.
How to Apply for Working Capital Loans Quickly
What makes the working capital loan application process so exciting? One selling point is that it takes about the same amount of time to complete as it does to read this blog post!
The application is structured to give just enough information to make a successful risk determination on all applicants. All you need is:
- the business owner’s name and Social Security number,
- the business’s name and federal tax ID number,
- access to corporate bank statements,
- some general business information, and
- recent financials (for loans above $100,000).
Sound like a minimal amount? It is. Typically, when you apply for working capital loans, you’re asked for far more documentation. With this streamlined method, you can give a little to get a lot. That’s efficiency at its best, especially if you’re trying to ramp up quickly to satisfy a substantial order, you need to obtain more equipment, or you want to hire seasonal staff.
After receiving your application for our business working capital loans, our credit analysts will look over the application. Specifically, they’ll concentrate on three major areas:
1. The business’s (and owner’s) credit history and track record.
A working capital loan makes sense only if the guarantor (frequently the owner) has an acceptable credit score and the business has good credit history. Often, the owner’s personal credit history can boost the chances of a two-years-young startup receiving approval for a working capital loan. Why? Because past performance tends to be a reliable indicator of future success.
A company’s time in business and its industry, plus its commercial credit history (if established), are equally key factors that our credit analysts weigh when assessing an application. And if our team needs more information, we’ll follow up.
2. The business’s perceived ability to repay the loan.
Businesses that apply for a working capital loan or any type of business loans for small business must be able to service the debt. A review of recent bank statements for revenue and balances will provide insight into what the business could comfortably repay.
This doesn’t mean your company needs to have a certain percentage of the working capital loan amount in the bank today. However, it does mean you should be able to prove a record of steady, predictable income.
3. How the working capital loan funds will be used.
Unlike other types of small business loans or lines of credit, working capital loans are intended for short-term operational expenses like hiring more employees or renting tools. Consequently, PEAC Solutions’ loan officers will want to know your business plans and goals.
The more confident our lenders are that your business is making shrewd choices and has planned carefully before applying for a working capital loan, the more assured they’ll be in offering you a loan.
You’re Approved! What Comes Next?
If you’ve received an approval for a working capital loan from PEAC Solutions, congratulations. Finishing the application process is simple, and you can have up to $150,000 in your account in as little as one day.
The next steps include looking through and accepting electronic finance documents outlining the payment amount and term agreement. Before signing the documents, our team may want more information. After we receive everything, you’ll complete a verbal authorization. At that point, we’ll release the funds quickly into your account.
Getting approved for business working capital loans doesn’t have to be hard or nerve-racking, especially when you partner with PEAC Solutions. Our focus is on making sure you have the working capital you need in order to keep your organization moving along. Fill out an application now to get the working capital loan process started.