When business owners applied for a small business loan in the past, they’d need to haul paperwork into their local bank and hope for the best. These days, there are plenty of options – some require little information, and others with better rates and terms require a fair amount of paperwork. Here’s a summary of what you’ll need to successfully complete a loan application. Every lender varies, but these are the top documents typically requested.
Application options
The first step in applying for a small business loan is deciding which borrower you want to apply to. Business owners can choose from traditional banks and credit unions, SBA-approved lenders, online business loan platforms, fintech lenders, and alternative capital providers. Each option comes with different expectations around documentation, timelines, and flexibility, so the right choice often depends on your business’s size, funding needs, and urgency.
Many modern loan applications, like the SmartBiz Bank application, rely on digital platforms that streamline the process. Instead of paper forms and in-person meetings with potential lenders, you can upload financial documents and submit everything online. These platforms are used for SBA loans and small business loans, reducing wait times while maintaining lender requirements.
Eligibility and screening
Before moving forward with a business loan application, lenders typically conduct an initial eligibility and screening review to determine whether your business is a good fit for the financing you’re seeking. While credit scores used to be the make-or-break factor, that’s not necessarily the case today. Instead, lenders consider time in business, cash flow consistency, and revenue trends. This early screening process helps potential lenders decide if your business is a viable option for a loan and how risky lending you money might be.
Check your credit
When you apply for a business loan, lenders still review personal and business credit histories, but credit scores are no longer the only factor that lenders use. Credit reports help lenders understand how reliably you’ve managed debt in the past and whether payments have been made on time, which remains an important signal of risk.
Gather paperwork
Modern loan applications are still driven by documentation, but the focus has shifted toward clarity and consistency instead of sheer volume. Lenders want to see evidence that your business is stable, growing, and capable of repaying debt, which means current financials often matter as much as historical records.
In addition to the standard financial documents, many lenders also require projected financials, use-of-funds plans, SBA loan applications (when necessary), and ownership disclosures.
Other required documentation often includes:
- Completed loan application form
- Resume with professional experience
- Credit reports
- Personal and business tax returns
- Personal financial statements
- Profit and loss statements
- Balance sheet
- Collateral documentation
Process reality and timeline
In many cases, borrowers should expect the process to take anywhere from 30 to 90 days or longer, with SBA loans and larger financing requests often falling on the longer end of that range. Digital lenders and streamlined platforms may move faster, but even then, underwriting, document review, and final approvals take time.
SmartBiz Bank® may be able to help you get the funds that you need for your business. See if you pre-qualify today in less than five minutes.
FAQs
How long does the business loan application process take?
The timeline can range from about 30 days to 90 days or more, depending on the loan type and lender. Online and fintech lenders may move faster while SBA and traditional bank loans typically take longer due to added documentation and review steps.
Do lenders check personal and business credit?
Yes, many lenders review both personal and business credit. However, many lenders are shifting their focus to cash flow, revenue trends, and other factors.
What financial information do lenders review during underwriting?
Lenders typically review tax returns, profit and loss statements, balance sheets, and recent bank statements. They may also look at cash flow consistency, current debt obligations, and your plans for the loan proceeds.
Can I apply for a business loan if my business is new?
Yes, you can. However, options may be more limited for newer businesses with little operating history. Startups often rely on personal credit, projected financials, or alternative financing until they establish consistent revenue and have a proven track record in business.
