What Lenders Look For

Turn your application into an easy “yes.” Here’s the checklist lenders actually use.

Lenders don’t guess—they verify. Your goal is to present clean, consistent signals that remove doubt and make the decision obvious. Below is the lens most underwriters use to evaluate small business applications, and how to prepare each piece with precision.

1) Identity & Compliance

• Exact-match business details across state filing, EIN, bank, utilities, website, and listings (name, address, phone, NAICS).
• Core docs ready: Articles/Certificate, EIN letter, Operating Agreement/Bylaws, IDs for owners, licenses/permits.
• Professional presence: domain email (no free mailboxes), website with services, policies, and contact.

2) Banking Behavior

• No NSFs, minimal overdrafts, and stable average daily balances over the last 90 days.
• Deposits that align with your line of business—no unexplained spikes or cash-heavy anomalies.
• Reconciliation and ledger connected—signals of control and predictability.

3) Financial Statements

• Clean, current P&L, balance sheet, and cash-flow statement.
• DSCR and coverage: Can operating cash service proposed debt comfortably?
• Reasonable add-backs explained; owners’ draws documented.

4) Credit Profile

• Business credit: vendor tradelines that report (on-time, low utilization, aging nicely).
• Personal credit (if PG): on-time history, low revolving utilization, thin but clean is OK.
• Check for UCC filings, liens, judgments; resolve or explain proactively.

5) Revenue Quality & Concentration

• Consistent revenue trend vs. seasonal peaks only.
• Diversified customers; large single-client concentration flagged and explained.
• Margins that make sense for your industry and stage.

6) Documentation Pack (Make it easy to underwrite)

• One PDF “Underwriting Pack”: IDs, EIN, formation docs, licenses, last 3–6 months bank statements, financials, and proof of address.
• Executive Summary (1 page): who you serve, traction, use of funds, repayment logic.
• Invoices/contracts or pipeline snapshots when relevant.

7) Risk Flags to Fix Before You Apply

• Mismatched business names/addresses across documents and accounts.
• High daily balance volatility; frequent overdrafts or returned payments.
• Unfiled annual reports, expired licenses, or outdated website info.

8) Quick Wins (2–4 Weeks)

• Open a second vendor line that reports; keep purchases small and pay early.
• Consolidate recurring expenses to your business account to show stable activity.
• Draft your 1-page Executive Summary and assemble your Underwriting Pack.

9) Your Underwriter-Friendly Narrative

In plain language, explain: what you do, why now, how funds are used, and how you’ll repay. Attach the numbers that prove it. Clarity wins.

Need a second set of eyes? We’ll audit your file, clean inconsistencies, and package a lender-ready submission.