Applying for a business loan is easy, especially when done online through a reputable lender like Rapid Finance Co. After all, growing your business requires small business finance to fund expansion and seize timely opportunities.
However, many small business owners are unsure of what to expect after applying, leading to uncertainty and unnecessary anxiety.
This ebook will delve into the processes behind the scenes, providing insight into what happens after you’ve applied for your business loan.
The Approval Timeline:
The approval timeline for online business finance applications is typically much faster compared to traditional lending institutions, thanks to streamlined processes, advanced technologies in play, and the absence of comprehensive credit checks.
Let’s outline the different stages of the application and approval process to understand how long it takes before you receive your funds.
1 – Application:
The online application is swift and easy. Provide the necessary documentation and financial information, and fill out the required forms correctly to expedite the processing of your application.
2 – Initial Review:
After submitting your completed application, an initial review assesses the provided information for basic eligibility. This efficient process is swift due to the enhanced information processing capabilities at our disposal.
3 – Verification and Underwriting:
Once the initial review is complete, a verification and underwriting process examines your business’s financial statements and other relevant factors a little more closely to determine its ability to repay the loan. This is done to ensure protection for both the borrower and the lender.
4 – Loan Approval:
Based on the results of the verification and underwriting process, a decision is made regarding loan approval. If approved, you will be notified immediately. Up to this point in the process, no more than 48 hours will have passed since the initial application. Approval could very well be granted sooner than this.
5 – Funds Disbursal:
With approval in place, a fund transfer is initiated, and you can expect to receive the money in your account within 24 hours of the approval notice being issued.
The Terms Of The Loan Agreement
When your loan is approved, you will be sent a formal loan agreement outlining the terms and conditions. This important document outlines all of the obligations you have in terms of how much to repay and in what time frame.
Let’s take a look at the important components of this agreement.
1 – Loan Amount and Interest Rate:
The agreement will detail the approved loan amount and applicable interest rates, specifying whether the rate is fixed or variable based on the agreed-upon terms during the application.
2 – Repayment Terms:
The repayment schedule will also be outlined in this document, specifying the frequency and size of the installments as well as the total length of the repayment period.
Loans at Rapid Finance Co. typically have weekly repayment terms set over a period of anywhere between 18 weeks and 14 months, depending on the size of the loan.
3 – Collateral and Guarantees:
The agreement will clarify whether the loan is secured or unsecured, detailing any collateral requirements that may be necessary to issue the loan. An upfront down payment or certain business assets may be necessary in some cases.
4 – Fees and Charges:
Various fees, such as origination and processing fees, will also be detailed in the agreement. It’s important to consider these fees when planning your budget, as they are over and above the loan amount and the interest.
The agreement will also specify any penalties or fees payable for late payments or early settlements, if applicable.
To get the most benefit out of a business loan, it is essential for business owners to fully understand all the terms and conditions, as well as the associated time aspects of the approval, disbursement, and repayment processes.
To access small business finance, contact us today.