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6 Tips to Make Sure Your Deal Closes in Final Underwriting

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Operating a business isn’t easy– it takes a vision of success, the right team, and a continued thirst for growth. And at some point, all businesses require funding to shape these dreams into a reality. 

Pre-approval for financing is a great indicator that you’ll be able to get the funding you need. Even if you’re pre-approved, though, it’s possible for a lender to learn new information in the later stages of the deal that prevents the deal from closing.

But it’s not completely out of your hands. With the right strategy and a proactive approach, you can ensure that your deal reaches the finish line.

In our new eBook, 9 Ways to Prevent Your Business Loan From Dying, we tell you everything you need to know to get your next deal approved. Read on to get a quick overview of what you can do to help your deal close. You can also learn even more of these helpful tactics to finish your deal by downloading your full copy here!

How to Take Your Business Loan to the Finish Line

When it comes to lenders issuing an approval, almost everything you do in the months leading up to this point counts. If it’s visible on a bank statement, then lenders could take note—and may (or may not) change their minds.

These are the steps you can take to make sure that your deal makes it through the final steps and your business gets financing!

1. Deposit All Monies in Your Bank Account (NOT Just Credit Card Sales)

While credit score is no longer the make-or-break factor that it once was, your business’s annual sales are still crucial. 

This figure tells the lender how much money your business is making on a monthly or yearly basis. 

For this reason, it’s helpful for you to deposit all of your monies into your business bank account. This includes not only credit card sales, but also cash sales. 

2. Keep Your Account Positive

In the same vein, lenders will want to make sure that your account is positive. When you apply for small business financing, you should always avoid having a negative balance. 

Managing cash flow isn’t always a cakewalk—it’s actually one of the most common difficulties among small business owners. 

But if you’re planning to grow your business and need financing, getting your business bank account positive is a must. Underwriters tend to steer clear of making significant offers to applicants with negative balances. 

3. The More Liquidity, the Better

When it comes to approvals, the more cash you have on hand, the better.

Underwriters consider a variety of factors. But when it comes to approvals, they’re primarily interested in whether or not you have the capacity to pay the full amount back on the appropriate timetable.

Visible liquid assets increase your chances of qualifying for financing. Learn more about what types of liquid assets underwriters may look for when underwriting your deal in the full ebook!

9 Ways to Make Sure Your Deal Doesn’t Die in Final Underwriting

4. Maintain a Consistent Revenue Stream

Sure, business growth is a key consideration when it comes to evaluating your application. But demonstrating growth alone may not put you over the finish line.

Consistency, on the other hand, will.

Cautious underwriters might see sudden and unsustained sales spikes as an outlier or fluke. They might also consider them alarming.

Higher sales will never hurt you, but be sure to avoid manipulating the numbers to show massive spikes.

5. Accurately Report Your Debt – The Underwriter Will Find It!

Before giving the final stamp of approval, underwriters will take a thorough look inside your account. 

By examining your credit history, they’ll be able to find all of your past, current, and future debts. 

For this reason, it’s important that you accurately report all of your debt the first time around.

If you owe 90K, then don’t tell them that you owe 50. 

Lying about your debt to an underwriter will never help you, so be sure to always report your debts in full detail.

6. Show ALL of Your Business Bank Accounts

It’s not uncommon for business owners to have multiple bank accounts. This is an organizational tactic many business owners use to keep their monies organized by separating payroll, operating, and other expense/revenue streams. 

But while you may know how this money is organized, it may not be clear to your underwriter. 

Underwriters will attempt to track all of the revenue you’re reporting inside your provided bank accounts. If you report $100K in revenue, but they can only find $70K, then that’s a huge discrepancy. 

Always inform the underwriter about all of your business bank accounts so they get the clearest picture.

Download Your Free Copy: 9 Ways to Prevent Your Business Loan Deal From Dying

When there’s an opportunity to take your business to the next level, it’s never wise to wait around. Financing can give you the resources you need to pursue your new opportunity, instead of letting competitors get the edge.

But if you’re not prepared to take on financing (and be examined by underwriters), then you may leave it up to chance.

With our eBook, you’ll learn everything you need to know to get on the right track before your small business loan goes into final underwriting. 

You’ll get more information about the points above, and more tips about:

  • Accurately Tracking Your Business’s Financials
  • Staying Up to Date on Your Mortgage or Lease Payments
  • The Broker Hype (And Stacking)

Snag your free copy now (before it’s too late!)

9 Ways to Make Sure Your Deal Doesn’t Die in Final Underwriting
Last Updated on January 13, 2020

National Business Capital is the top FinTech marketplace offering small business loans and financing. Harnessing the power of leading technology and smart people, we’ve streamlined the application process to secure over $1 Billion in financing for business owners nationwide.

Our Business Financing Experts work within our 75+ Lender platform to match you with the right option. Easily access the best low-interest SBA loans, short and long-term loans, business lines of credit and equipment financing all in one place.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

About the Author, Joe Camberato

Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.

https://www.linkedin.com/in/growbyjoe/

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Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.