Anyone who has applied for a loan – whether as a small business or an individual – has likely heard of the term ‘underwriter.’ That said, although the term is quite common, what the underwriting process actually entails is widely misunderstood. As a result, many companies and owners are not aware of what could either qualify or disqualify their loan applications – particularly when applying for traditional small business financing.
Below we will provide you with everything you need to know regarding the small business loan underwriting process, including what information underwriters will use and want to confirm from companies like yours. Additionally, we’ll review how National Credit Partners identifies debt relief and modification options to help small businesses like yours succeed now and qualify for traditional financing in the future.
An underwriter is a financial expert tasked with reviewing and assessing a small business’s financial condition in respect to a loan application. The underwriter must determine how much of a risk the lender will take on by issuing a loan to the small business.
In addition to helping the lender determine whether or not you’ll be approved for a loan, the underwriter works with the applicant to make sure that all paperwork is submitted properly.
Underwriters will look at a variety of information related to your small business’s overall financial condition. Some of the key questions asked by underwriters when considering a small business loan include:
These three basic questions are what small business loan underwriters are typically looking to answer – with assurance – before approving traditional financing. If the underwriter is confident that the answer to all of those questions is an affirmative “yes,” they will likely approve your loan. If there’s any uncertainty as to the answer to any of the above listed questions, the underwriter will likely do some additional due diligence to help better determine whether or not you are a good candidate for a loan.
By knowing what questions an underwriter is seeking to answer about your small business, you can better prepare your loan application before submitting for the review process.
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While every underwriter may consider various criteria (and weigh one criterion more heavily than another), the majority of lenders simply want to know that your small business will make payments on-time. Some of the key information reviewed by underwriters during the application process includes:
How Long Does Underwriting Take?
This is a difficult to question to answer, as it depends largely on your small business’s unique financial situation and the lender you’ve chosen. Underwriting is a process that varies on a case-by-case basis. Ultimately, the sooner an underwriter can answer the questions outlined above (with confidence), the sooner you’ll be approved for your small business loan.
Accordingly, ensuring all documentation and any relevant information is provided upfront is strongly recommended. This can help reduce the overall amount of time it takes for a company to be approved for a small business loan.
How Can National Credit Partners Help Your Small Business Become Eligible for Traditional Financing?
At National Credit Partners, we help small businesses like yours identify debt relief and debt modification solutions to get back on track as soon as possible. If you’re struggling to obtain traditional financing, we can identify customized options created specifically to your small business’s needs which allow for immediate cash flow, but also get your company on the path towards traditional financing approval in the near future.
Unlike most other debt relief companies, National Credit Partners offers unique advantages to help your business improve its financial condition. For example:
We’ve successfully helped small businesses facing significant financial challenges – including defaults, collections, and legal actions – achieve permanent debt relief solutions. In fact, many of our distressed business clients were able to qualify for traditional financing (like SBA or term loans) after graduating our program.
With our years of experience and proven results, the National Credit Partners team of dedicated professionals is here to help your business find a debt relief solution that is tailored to directly meet your needs, challenges, and future goals.
Call us today at 949-868-1052 or fill out the contact form below to arrange for a free and no obligation consultation with one of our skilled team members. We’ll review your company’s specific circumstances thoroughly and discreetly and utilize our decades of experience and proven results to help you achieve your financial goals.
Don’t settle for an unproven debt relief professional that could potentially make your business’s situation worse through inexperience. Choose National Credit Partners, the company offering direct, strong, and proven relationships established with countless creditors. We’ve helped companies achieve the financial solutions they need to make fresh starts, and can do the same for your business by identifying the personalized debt relief option that is right for you.
As your premier and Better Business Bureau A+ rated debt consolidation company, National Credit Partners is comprised of professionals specializing in helping small and medium-sized businesses like yours achieve the debt relief they need.
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