The exact application process for a line of credit varies from lender to lender.
Some lenders, like Kabbage, just ask you a few questions and then connect to your business checking account. Within minutes, its algorithm will decide whether or not you’re approved for a business line of credit.
Other lenders, though, have much more involved application processes. Lendio, for example, will get some basic information from you and then ask you for supporting documentation. Then it takes a day or three to match you with lenders, after which you can choose from LOC offers.
In any case, your lender should clearly walk you through the process. But if you want to be extra prepared (which we support 100%), have some commonly requested documents ready:
- Personal tax returns
- Business tax returns
- Bank statements
- Business plan
- Collateral details
- Other relevant financial statements
After you get your application in, you’ll get the fun of waiting to hear back about whether or not you were approved. Again, in some cases you might hear back almost immediately, but other lenders can take a week or two.
Sit tight, and you’ll get an answer before you know it.