Prepare before applying
Business Loan Requirements: Prepare Your Application
Before applying, check three things: whether the provider accepts your business, whether the payment fits your cash flow, and whether your records support the request. There is no single credit score or revenue threshold for every business loan.
Discuss business fundingFunding specialists, not a lender. No approval guarantee.
Updated October 28, 2026
When to explore funding
- You can explain the purchase or cash-flow gap and the amount needed.
- Your records separate sales from transfers, new debt and one-time deposits.
- The proposed payment leaves enough cash for essential expenses and a reserve.
Pause and reassess when
- A promised approval depends only on a score or monthly deposit figure.
- You need another advance to make the first payments.
- The requested amount includes expenses you have not priced or verified.
Check product requirements before sending an application
An equipment purchase, recurring inventory gap and unpaid customer invoice need different assessments. Start with the purpose and repayment source, then ask about the provider’s minimum history, eligible industries, location and credit criteria. Record whether those are application requirements or conditions for final approval. A provider can decline an otherwise eligible application.
Use named lender criteria, not universal cutoffs
For example, Chase lists annual business revenue of at least $100,000 and a FICO score of at least 660 among requirements for its business line of credit. It also considers ownership history and credit records. These are Chase criteria, not Nowbiz criteria or a promise of approval. Other providers and products differ; these examples do not imply a partnership.
Build a revenue record that matches the bank statements
Create a month-by-month summary of customer receipts, transfers between your accounts, owner contributions, refunds and borrowed money. Explain unusual deposits instead of counting everything as sales. Match the summary to bookkeeping records and retain supporting invoices. If revenue is seasonal, show the quieter months as well as the best month so the repayment plan is credible.
List existing debt before calculating a new payment
For each obligation, record the current balance, payment amount, frequency, final date and any security. Include card payments, equipment leases and daily or weekly deductions. Convert payments to a consistent planning period, but also check actual debit dates: a monthly surplus can hide an empty bank account on payroll day. Keep household needs separate when reviewing business cash.
Ask about credit checks, security and guarantees
Before consenting, ask whose credit will be checked, whether the inquiry is soft or hard and at which stage it occurs. Request the proposed collateral and personal-guarantee terms in writing. An LLC does not by itself answer these questions. Chase, for example, describes personal and business credit inquiries for its line; other providers may follow different processes.
Know what a funding specialist adds
Now Biz Fund can help organize the purpose, amount and repayment questions for a funding review. We do not set a lender’s credit policy or guarantee an offer. If your existing bank already offers suitable terms and clear instructions, applying directly may be the simpler route. For SBA 7(a), the application goes through a participating lender, which determines the documents required for your circumstances.
Turn the checklist into a useful inquiry
State the amount, purpose, deadline, operating history and approximate revenue accurately. Identify the biggest uncertainty, such as a recent revenue drop or existing daily payments. Ask what further records are needed through the protected process. A complete inquiry starts a review; it is not a final loan application, approval or commitment to fund by a particular date.
Work through the numbers
| Item | Normal month | Weaker month |
|---|---|---|
| Customer receipts | $40,000 | $34,000 |
| Operating expenses and planned tax reserve | −$29,000 | −$27,000 |
| Existing debt payments | −$4,000 | −$4,000 |
| Cash before new financing | $7,000 | $3,000 |
| Proposed new payment | −$2,000 | −$2,000 |
| Cash remaining | $5,000 | $1,000 |
Illustration only, not a lender underwriting formula or approval threshold. The weaker month assumes lower variable expenses but unchanged debt payments. Decide whether the remaining cash covers surprises and owner needs; include other obligations missing from your own budget.
Prepare the file
Prepare a useful funding file
Keep sensitive records for the protected application process when requested. Do not email identity or financial documents.
- Business identity, ownership details and intended use of funds.
- The bank-statement period requested by the provider, plus explanations of unusual activity.
- Recent financial statements and tax returns when required.
- An existing-debt schedule with payment amounts and dates.
- Purchase quotes, contracts or invoices supporting the request.
Business funding inquiry
Discuss a documented funding request
Share the purpose and amount you need so the review can focus on a suitable product and manageable repayment.
Submitting an inquiry does not commit you to financing. Ask about any later credit checks, fees and provider conditions before proceeding.
Common questions
Useful answers before you begin.
What credit score do I need?
Ask the specific provider and product. A score alone does not establish eligibility or approval. Review revenue, existing debt and other requirements together.
Do six months of statements guarantee funding?
No. Statements support review of income and cash flow; the required period and approval decision depend on the provider.
Should I apply to every lender?
First check eligibility, costs and the credit-inquiry process. Comparing requirements can help avoid applications that do not fit your business.