Whether you have done it before or youโre new to the process, applying for a small-business loan can be frustrating and difficult to navigate. In the Federal Reserveโs 2023 Small-Business Credit Survey, over half of business owners who reported feeling discouraged from applying for funding cited lender requirements as the reason. With large banks in particular, a difficult application process was one of the top challenges borrowers faced, second only to high interest rates.
kAm%@ 96=A D965 =:89E @? E96 AC@46DD[ H6 DA@<6 H:E9 EH@ D>2==\3FD:?6DD =6?5:?8 AC@76DD:@?2=D โ H9@ E@86E96C 92G6 ?62C=J 7@FC 564256D @7 6IA6C:6?46 H@C<:?8 H:E9 D>2== 3FD:?6DD6D โ 23@FE E96 7F?5:?8 AC@46DD[ H92E =6?56CD 2C6 =@@<:?8 7@C 2?5 9@H 3FD:?6DD @H?6CD 42? 2AAC@249 =6?56CD]k^Am
kAmk6>m#6DA@?D6D 92G6 366? 65:E65 7@C =6?8E9 2?5 4=2C:EJ] {62C? >@C6 23@FE 6249 =6?56C 27E6C E96 BF6DE:@?D]k^6>mk^Am
k9am(92E 4@>A@?6?ED @7 2 3FD:?6DDโD 7:?2?4:2=D 5@ =6?56CD =@@< 2Enk^9am
kAmkDEC@?8mp=6I:D s:D9>2?k^DEC@?8m WD>2== 3FD:?6DD 49:67 =6?5:?8 @77:46C 2E r@>>F?:EJ #6:?G6DE>6?E uF?5Xi t249 D>2==\3FD:?6DD =6?56C H:== G2CJ[ 3FE >2?J H:== =@@< 2E E96 =2DE D6G6C2= J62CD @7 C6G6?F6 E@ 86E 2 D6?D6 @7 9@H E96 3FD:?6DD 92D A6C7@C>65] u@C 6I2>A=6[ ๐ C6G6?F6 8@:?8 FAn x7 ?@E[ ๐ E96C6 2 C62D@? 7@C E96 564=:?6n p =6?56C >2J FD6 E9:D :?7@C>2E:@? E@ 6G2=F2E6 8C@HE9 AC@;64E:@?D 7@C E96 3FD:?6DD E@ 6?DFC6 E92E E96JโC6 249:6G23=6 2?5 F=E:>2E6=J DFAA@CE E96 C6A2J>6?E @7 E96 A@E6?E:2= =@2?]k^Am
kAm&?56CHC:E6CD 2=D@ @7E6? =@@< 2E ?6E :?4@>6 2?5 =@DD6D 2?5 ECJ E@ F?56CDE2?5 E96 5C:G6CD 369:?5 6249 >62DFC6>6?E]k^Am
k9amw@H 5@6D F?56CHC:E:?8 7@C 3FD:?6DD =@2?D 5:776C 7C@> A6CD@?2= =@2?Dnk^9am
kAmkDEC@?8m$2>F6= uF6?E6Dk^DEC@?8m W=@2? @77:46C 2E x?E6Cq2?<Xi qFD:?6DD =@2?D FD6 563E D6CG:46 4@G6C286 C2E:@ Ws$r#X E92E ๐ 42=4F=2E65 2D 2? 2??F2= ?F>36C E@ D66 :7 2 562= H:== 42D9 7=@H W:7 2 3FD:?6DD 92D 6?@F89 42D9 E@ DFAA@CE E96 =@2?X] r@?DF>6C =@2?D FD6 563E\E@\:?4@>6 C2E:@ Ws%xX E92E ๐ 42=4F=2E65 2D 2 >@?E9=J ?F>36C E@ D66 :7 2 562= H:== 42D9 7=@H] %9:D ๐ 3642FD6 D@>6 3FD:?6DD6D >:89E 36 4J4=:42= 2?5 2 >@?E9=J 42=4F=2E:@? H@F=5 36 >:D=625:?8 7@C E96 3FD:?6DDโD @G6C2== 42D9 7=@H]k^Am
k9am(9J 5@ =6?56CD =@@< 2E A6CD@?2= E2I C6EFC?D @C :?4@>6 7@C 2 3FD:?6DD =@2?nk^9am
kAmkDEC@?8mkDEC@?8mp=6I:D s:D9>2?k^DEC@?8mik^DEC@?8m &?56CHC:E6CD H:== @7E6? =@@< 2E A6CD@?2= E2I C6EFC?D E@ >2<6 DFC6 :?4@>6 7C@> E96 3FD:?6DD :D?โE 7F?5:?8 2 3@CC@H6CโD =:76DEJ=6 36J@?5 E96 D2=2CJ E96J E2<6] %2I C6EFC?D 2=D@ 96=A E96 =6?56C :56?E:7J 2?J 255:E:@?2= D@FC46D @7 :?4@>6 E92E 4@F=5 DFAA@CE E96 3FD:?6DD[ H9:49 4@F=5 96=A :>AC@G6 492?46D @7 2AAC@G2=]k^Am
k9am$9@F=5 3FD:?6DD6D 6IA64E E@ D:8? 2 A6CD@?2= 8F2C2?E66nk^9am
kAmkDEC@?8mkDEC@?8mp=6I:D s:D9>2?k^DEC@?8mik^DEC@?8m !6CD@?2= 8F2C2?E66D 2C6 AC6EEJ EJA:42= H:E9 D>2==\3FD:?6DD =@2?D 3642FD6 E96 @H?6C ๐ 2? :?E68C2= A2CE @7 E96 3FD:?6DDโD DF446DD] pD 2 =6?56C :EโD @FC H2J @7 2D<:?8 E96> E@ DE:4< ๐ E96C6 H:E9 FD] x <:?5 @7 =@@< 2E :E D@>6E:>6D 2D >@C2= DFAA@CE[ 3FE :EVD C62==J E96> AFEE:?8 E96:C ?2>6 369:?5 E96 =@2? 3642FD6 H6VC6 A2CE?6CD ๐ E96 EC2?D24E:@?]k^Am
kAmkDEC@?8mkDEC@?8m$2>F6= uF6?E6Dk^DEC@?8mik^DEC@?8m *6D[ x?E6Cq2?< 5@6D C6BF:C6 A6CD@?2= 8F2C2?E66D] u@C EH@ C62D@?D >2:?=J] ~?6[ D@ E96C6 ๐ 2 D64@?5 D@FC46 @7 C6A2J>6?E] %H@[ D@ E92E E96 @H?6C 92D D<:? ๐ E96 82>6] p 3FD:?6DD @H?6C H9@ :D?VE H:==:?8 E@ D:8? @? E96 5@EE65 =:?6 H:E9 E96:C 3FD:?6DD C2:D6D k2 9C67lQ9EEADi^^HHH]?6C5H2==6E]4@>^2CE:4=6^D>2==\3FD:?6DD^>2DE6C\E96\d\4D\@7\4C65:EnFE>042>A2:8?l4E0AC@5U2>AjFE>04@?E6?El`dhah_hU2>AjFE>0>65:F>lCDDU2>AjFE>0D@FC46lDJ?5:42E:@?U2>AjFE>0E6C>l3=@I5:8:E2=Q E2C86ElQ0D6=7Q C6=lQ?@7@==@H ?@@A6?6CQm492C24E6C :DDF6 BF6DE:@?Dk^2m]k^Am
k9am(92E 42? D>2==\3FD:?6DD @H?6CD 5@ E@ AC6A2C6 E96>D6=G6D E@ 2AA=J 7@C 7F?5:?8nk^9am
kAmkDEC@?8mkDEC@?8m$2>F6= uF6?E6Dk^DEC@?8mik^DEC@?8m %96J D9@F=5 DE2CE E2=<:?8 E@ E96:C =6?56C 2?5 244@F?E2?E 23@FE E96:C A=2?D E@ 3@CC@H] %96 E62> 2 3FD:?6DD @H?6C 92D 2C@F?5 E96> D9@F=5 36 4@??64E65 2?5 36 23=6 E@ 96=A 6249 @E96C F?56CDE2?5 H92E E96 @E96C ?665D E@ 96=A E96 4=:6?E DF44665]k^Am
kAms@?VE 36 27C2:5 E@ 2D< :7 J@F 5@?VE F?56CDE2?5 H92E E96 =6?56C 2D<D @7 J@F[ @C :7 J@F 5@?VE <?@H 9@H E@ 7:== D@>6E9:?8 @FE]k^Am
k9am(92E 2C6 D@>6 4@>>@? >:DE2<6D E92E 2AA=:42?ED >2<6nk^9am
kAmkDEC@?8mkDEC@?8mp=6I:D s:D9>2?k^DEC@?8mik^DEC@?8m ~?6 4@>>@? >:DE2<6 E92E 2AA=:42?ED >2<6 H96? 2AA=J:?8 7@C 2 =@2? ๐ ?@E 36:?8 FA7C@?E 23@FE A2DE 492==6?86D[ DF49 2D A6CD@?2= 4C65:E 3=6>:D96D @C 3FD:?6DD 5@H?EFC?D] %96D6 2C6?โE 2=H2JD 6?;@J23=6 E@A:4D E@ 5:D4FDD[ 3FE 36:?8 EC2?DA2C6?E H:E9 E96 =6?56C ๐ 2=H2JD 2 8@@5 :562]k^Am
kAmxE >2J D66> 4@F?E6C:?EF:E:G6[ 3FE 3J 5:D4FDD:?8 A2DE 492==6?86D H:E9 2 =6?56C[ 2? 6?EC6AC6?6FC >2J 36 23=6 E@ 9:89=:89E 9@H E96J @G6C42>6 E96D6 @3DE24=6D 2?5 36EE6C A@D:E:@?65 E96:C 3FD:?6DD 7@C DF446DD ๐ E96 =@?8\E6C> 2D 2 C6DF=E]k^Am
kAmkDEC@?8mkDEC@?8m$2>F6= uF6?E6Dk^DEC@?8mik^DEC@?8m |2?J 2AA=:42?ED 5@?VE 7:== @FE E96:C A6CD@?2= 7:?2?4:2= DE2E6>6?E 7F==J @C 4@CC64E=J] %9:D 4C62E6D BF6DE:@?D H96? :E 4@>6D E@ 7:8FC:?8 @FE E96 DEC6?8E9 @7 E96 8F2C2?E@C]k^Am
kAm$@>6 2AA=:42?ED ECJ E@ EFC? ๐ ;FDE A@CE:@?D @7 E96:C E2I C6EFC?D @C 6G6? ECJ E@ D6?5 ๐ EC2?D4C:AED @?=J] %96 32?<D ?665 E96 7F== 4@>A=6E6 E2I C6EFC?D E@ H@C< =@2?D]k^Am
k9am(92E 2C6 D@>6 4@>>@? C62D@?D =@2? 2AA=:42E:@?D 86E 56?:65nk^9am
kAmkDEC@?8mkDEC@?8mp=6I:D s:D9>2?k^DEC@?8mik^DEC@?8m x? D@>6 42D6D 2? 2AA=:42?E >2J ?@E 92G6 DF77:4:6?E @A6C2E:?8 42D9 7=@H E@ >2<6 =@2? A2J>6?ED @C =24< E96 k2 9C67lQ9EEADi^^HHH]?6C5H2==6E]4@>^2CE:4=6^D>2==\3FD:?6DD^D>2==\3FD:?6DD\=@2?D\4@==2E6C2=\=:6?\A6CD@?2=\8F2C2?E66nFE>042>A2:8?l4E0AC@5U2>AjFE>04@?E6?El`dhah_hU2>AjFE>0>65:F>lCDDU2>AjFE>0D@FC46lDJ?5:42E:@?U2>AjFE>0E6C>l3=@I5:8:E2=Q E2C86ElQ0D6=7Q C6=lQ?@7@==@H ?@@A6?6CQm4@==2E6C2=k^2m C6BF:C65] x? @E96C 42D6D[ 2 =@2? >2J 36 56?:65 D:>A=J 3642FD6 2? 2AA=:42?E 5:5?โE 4@>A=6E6 E96 =@2? 2AA=:42E:@?] q67@C6 2AA=J:?8 7@C 2 =@2? :EโD :>A@CE2?E E@ F?56CDE2?5 E96 =6?56CโD A2C2>6E6CD]k^Am
kAmkDEC@?8mkDEC@?8m$2>F6= uF6?E6Dk^DEC@?8mik^DEC@?8m }F>36C @?6 H@F=5 36 4C65:E :DDF6D W4FCC6?E 4@==64E:@?D[ A2DE 5F6D[ 6E4]X H:E9 ?@ 6IA=2?2E:@?] %H@ H@F=5 36 42D9 7=@H W2AA=:42?ED 5@?VE 92G6 E96 :?4@>6 E@ DFAA@CE E96 =@2? C6BF6DEX] %9C66[ E96 4@==2E6C2= :D?VE DF77:4:6?E E@ 4@G6C E96 =@2? C6BF6DE]k^Am
k9am(92E 5@ J@F C64@>>6?5 2D ?6IE DE6AD 7@C 2AA=:42?ED H9@ 2C6 56?:65nk^9am
kAmkDEC@?8mkDEC@?8mp=6I:D s:D9>2?k^DEC@?8mik^DEC@?8m x7 2 =@2? ๐ 564=:?65[ x H@F=5 C64@>>6?5 D4965F=:?8 2 >66E:?8 H:E9 E96 =6?56C E@ 5:D4FDD E96 C62D@?D H9J] ~?46 E96 2AA=:42?E ๐ 23=6 E@ F?56CDE2?5 E96 C62D@?D 7@C E96 564=:?65 =@2?[ D66< 2 E649?:42= 2DD:DE2?46 AC@G:56C @C 3FD:?6DD 25G:D@CJ D6CG:46 E@ AC@G:56 2DD:DE2?46 H:E9 >2<:?8 492?86D E@ E96 2AA=:42E:@? @C 3FD:?6DD 7C2>6H@C< E92E H:== >2<6 7FEFC6 2AA=:42E:@?D DF446DD7F=]k^Am
kAmkDEC@?8mkDEC@?8m$2>F6= uF6?E6Dk^DEC@?8mik^DEC@?8m xE 56A6?5D @? E96 56?:2= C62D@?] x7 :EVD 2 4C65:E :DDF6[ x E6== E96> E@ H@C< @? A2J:?8 E9:?8D @77 @C 42E49:?8 FA 367@C6 4@>:?8 324< 7@C 2 =@2?] x7 :EVD 42D9 7=@H[ x E6== E96> E@ >66E H:E9 E96:C 244@F?E2?E E@ 5:D4FDD E96 3FD:?6DD @H?6CโD 8@2=D @7 3@CC@H:?8[ 2?5 7:?5 H2JD E@ :?4C62D6 HC:E6\@77D E92E 2C6 255\324<D[ @C 5:D4FDD H2JD E@ 7:?5 >@?6J 7@C 2 5@H? A2J>6?E]k^Am
kAm%96C6 2C6 ?@ BF:4< 7:I6D E9@F89 โ >@DE @7 E96D6 D@=FE:@?D H:== AFD9 3FD:?6DD @H?6CD 2E =62DE E@ E96 7@==@H:?8 J62C 7@C 2 =@2?]k^Am
k9am(92EVD J@FC 25G:46 7@C 2 3FD:?6DD E92E 5@6D?VE >66E E96 4C:E6C:2 3FE DE:== ?665D 7F?5:?8nk^9am
kAmkDEC@?8mkDEC@?8mp=6I:D s:D9>2?k^DEC@?8mik^DEC@?8m x H@F=5 DF886DE C6D62C49:?8 @E96C =6?56CD E92E E96 2AA=:42?EVD 3FD:?6DD AC@7:=6 >2J 36EE6C 2=:8? H:E9 DF49 2D k2 9C67lQ9EEADi^^HHH]?6C5H2==6E]4@>^2CE:4=6^D>2==\3FD:?6DD^457:\=@2?DnFE>042>A2:8?l4E0AC@5U2>AjFE>04@?E6?El`dhah_hU2>AjFE>0>65:F>lCDDU2>AjFE>0D@FC46lDJ?5:42E:@?U2>AjFE>0E6C>l3=@I5:8:E2=Q E2C86ElQ0D6=7Q C6=lQ?@7@==@H ?@@A6?6CQm4@>>F?:EJ 56G6=@A>6?E 7:?2?4:2= :?DE:EFE:@?Dk^2m WrsuxDX @C 4C@H57F?5:?8]k^Am
kAmkDEC@?8mkDEC@?8m$2>F6= uF6?E6Dk^DEC@?8mik^DEC@?8m %96C6 2C6 D6G6C2= 2=E6C?2E:G6 =6?5:?8 :?DE:EFE:@?D 2?5 2=E6C?2E:G6 H2JD E@ C2:D6 42A:E2=] rsuxD[ k2 9C67lQ9EEADi^^HHH]?6C5H2==6E]4@>^2CE:4=6^D>2==\3FD:?6DD^92C5\>@?6J\3FD:?6DD\=@2?DnFE>042>A2:8?l4E0AC@5U2>AjFE>04@?E6?El`dhah_hU2>AjFE>0>65:F>lCDDU2>AjFE>0D@FC46lDJ?5:42E:@?U2>AjFE>0E6C>l3=@I5:8:E2=Q E2C86ElQ0D6=7Q C6=lQ?@7@==@H ?@@A6?6CQm92C5 >@?6J =@2?Dk^2m[ AC:G2E6 >@?6J =@2?D[ @C D6== 6BF:EJ ๐ E96 4@>A2?J W@H?6CD9:A DE2<6X] %96D6 2C6 ;FDE 2 76H 6I2>A=6D]k^Am
k9am|@C6 23@FE E96 =6?56CDk^9am
kAmkDEC@?8mp=6I:D s:D9>2?k^DEC@?8m ๐ E96 D>2== 3FD:?6DD 49:67 =6?5:?8 @77:46C 2E r@>>F?:EJ #6:?G6DE>6?E uF?5 Wr#uX[ 2 ?@?AC@7:E rsux E92E 2:>D E@ 6BF2=:K6 64@?@>:4 @AA@CEF?:E:6D 3J H@C<:?8 H:E9 3FD:?6DD6D E92E 2C6 EJA:42==J 56?:65 42A:E2= 2446DD] $96 @G6CD66D 2== D>2==\3FD:?6DD =6?5:?8 2E r#u 2?5 92D AC6G:@FD=J H@C<65 2E q2?< @7 p>6C:42 2?5 r@>6C:42 q2?<]k^Am
kAmkDEC@?8m$2>F6= uF6?E6Dk^DEC@?8m ๐ 2 =@2? @77:46C H:E9 x?E6Cq2?<[ 2 4@>>F?:EJ 32?< H:E9 @77:46D ๐ ~<=29@>2 2?5 %6I2D] w6 92D H@C<65 AC6G:@FD=J 2E q2?< @7 p>6C:42[ r92D6 2?5 %CFuF?5 u:?2?4:2= $6CG:46D x?4][ 2 rsux]k^Am
k5:G 4=2DDlQ?H\>@C6\7C@>\?6C5H2==6EQ 52E2\?H\4@>A@?6?E\EJA6\?2>6lQ|@C6 uC@> }6C5(2==6EQ 52E2\?H\4@>A@?6?E\EJA6\D=F8lQ?H0>@C607C@>0?6C5H2==6EQmkAmkDEC@?8m|@C6 uC@> }6C5(2==6Ek^DEC@?8mk^AmkF=mk=:mk2 9C67lQ9EEADi^^HHH]?6C5H2==6E]4@>^2CE:4=6^D>2==\3FD:?6DD^52E2\3FD:?6DD\2AA=:42E:@?D\a_acnFE>042>A2:8?l4E0AC@5U2>AjFE>0D@FC46lDJ?5:42E:@?U2>AjFE>0>65:F>lCDDU2>AjFE>0E6C>l3=@I5:8:E2=U2>AjFE>04@?E6?El`dhah_hQ E:E=6lQ}6H qFD:?6DD6D $FC86 3FE |2J q6 %6DE65 %9:D *62CQ E2C86ElQ0D6=7Q 4=2DDlQ?H\=:?<Q C6=lQ?@7@==@H ?@@A6?6CQ 52E2\?H\4@>A@?6?E\EJA6\?2>6lQ{:?<Q 52E2\?H\4@>A@?6?E\EJA6\D=F8lQ?H0=:?<Q 52E2\?H\EC24<\4=:4<lQ`Q 52E2\?H\EC24<\:>AC6DD:@?lQ`Qm}6H qFD:?6DD6D $FC86 3FE |2J q6 %6DE65 %9:D *62Ck^2mk^=:mk=:mk2 9C67lQ9EEADi^^HHH]?6C5H2==6E]4@>^2CE:4=6^D>2==\3FD:?6DD^86EE:?8\C625J\E@\C6E:C6\@AE:@?D\7@C\J@FC\3FD:?6DDnFE>042>A2:8?l4E0AC@5U2>AjFE>0D@FC46lDJ?5:42E:@?U2>AjFE>0>65:F>lCDDU2>AjFE>0E6C>l3=@I5:8:E2=U2>AjFE>04@?E6?El`dhah_hQ E:E=6lQv6EE:?8 #625J E@ #6E:C6n b ~AE:@?D 7@C *@FC qFD:?6DDQ E2C86ElQ0D6=7Q 4=2DDlQ?H\=:?<Q C6=lQ?@7@==@H ?@@A6?6CQ 52E2\?H\4@>A@?6?E\EJA6\?2>6lQ{:?<Q 52E2\?H\4@>A@?6?E\EJA6\D=F8lQ?H0=:?<Q 52E2\?H\EC24<\4=:4<lQ`Q 52E2\?H\EC24<\:>AC6DD:@?lQ`Qmv6EE:?8 #625J E@ #6E:C6n b ~AE:@?D 7@C *@FC qFD:?6DDk^2mk^=:mk=:mk2 9C67lQ9EEADi^^HHH]?6C5H2==6E]4@>^2CE:4=6^D>2==\3FD:?6DD^3FD:?6DD\8C2?E\D42>DnFE>042>A2:8?l4E0AC@5U2>AjFE>0D@FC46lDJ?5:42E:@?U2>AjFE>0>65:F>lCDDU2>AjFE>0E6C>l3=@I5:8:E2=U2>AjFE>04@?E6?El`dhah_hQ E:E=6lQqFD:?6DD vC2?E $42>Di f #65 u=28D E@ (2E49 u@CQ E2C86ElQ0D6=7Q 4=2DDlQ?H\=:?<Q C6=lQ?@7@==@H ?@@A6?6CQ 52E2\?H\4@>A@?6?E\EJA6\?2>6lQ{:?<Q 52E2\?H\4@>A@?6?E\EJA6\D=F8lQ?H0=:?<Q 52E2\?H\EC24<\4=:4<lQ`Q 52E2\?H\EC24<\:>AC6DD:@?lQ`QmqFD:?6DD vC2?E $42>Di f #65 u=28D E@ (2E49 u@Ck^2mk^=:mk^F=mk^5:Gm
k5:G 4=2DDlQ?H\2FE9@C\3@I\HAQ 52E2\?H\4@>A@?6?E\EJA6\?2>6lQpFE9@C q@I \ (!Q 52E2\?H\4@>A@?6?E\EJA6\D=F8lQ?H02FE9@C03@I0HAQmk5:G 4=2DDlQ?H\2FE9@C\3@I\HA\\:??6CQmk2D:56 :E6>AC@AlQ2FE9@CQ :E6>EJA6lQ9EEAi^^D496>2]@C8^!6CD@?Q 4=2DDlQ?H\2FE9@C\3@IQ 52E2\?H\4@>A@?6?E\EJA6\?2>6lQpFE9@C q@IQ 52E2\?H\4@>A@?6?E\EJA6\D=F8lQ?H02FE9@C03@IQmkAm~=:G:2 r96? HC:E6D 7@C }6C5(2==6E] t>2:=i k2 9C67lQ>2:=E@i@496?o?6C5H2==6E]4@>Qm@496?o?6C5H2==6E]4@>k^2m]k^Amk^2D:56mk^5:Gmk^5:Gm
kA 4=2DDlQ?H\@C:8:?2==J\A@DE65\=:?<Qm%96 2CE:4=6 $>2==\qFD:?6DD {6?56CD $92C6 2? x?D:56 {@@< 2E E96 {@2? !C@46DD @C:8:?2==J 2AA62C65 @? }6C5(2==6E]k^Am
Read More