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How to get approved for a business loan. 4 Tips

Updated: Oct 19, 2019

Let's face it at some point or another you're going to need to borrow money for expansion purposes, inventory or even equipment (just naming a few) and all the while you still have a business to run. You don't have time to stop and actually think "how can i get approved for a business loan?''. Don't worry though, these 4 tips will help you get money for your business.


  1. Know your credit score: I can't tell you how many times I've been working with a client and I ask if they know their credit score and they say "eh, it's probably around 700". That's not good enough! Know exactly what your score is and why. Do you have late payments? collection accounts? liens!? Is your credit utilization almost 100%? Do yourself a favor and know what it is and WHY. You can even get a free credit report once a year. NO excuses.

  2. Try your best to apply before you need the money: I know that this one can be tricky because when you had money you didn't have the problem you are facing now. But if you can just try and anticipate even just a couple weeks preferably a month ahead you'll increase the odds of getting approved dramatically! because your business cash flow will look healthier then when you are strapped for cash and credit scores are usually higher.

  3. Maintain healthy bank balances: Do your best to maintain consistent monthly deposits along with consistent daily ending balances! Those are important because it shows the underwriters that your business generates enough consistent revenue to support a payment. Having more than 5 NSF days per month is a huge red flag. Try your best to avoid those. Do your best to also have more than 5 deposits per month and if possible from 3 different clients. That shows you are not just relying on one customer for all your business and you receive multiple payments.

  4. Be honest with your account manager they're on your side: The person on the other side of the phone or desk is trying to help you get approved. They are NOT the underwriter trying to decline you or find something wrong! Be completely transparent and honest about your situation and what you are trying to accomplish. They will know exactly what program you can qualify for and give you realistic expectations. You are a team working together. The account manager also has to speak with underwriters about what the money is going towards and how it will help the business it's not just an algorithm saying yes or no to deals.

I hope these tips help you out or at least give you something to think about the next time you are in the market for a small business loan.


ZonaFunding can help you on this journey. We offer flexible, short-term small business loans that help you invest in the future growth of your company without taking excess risk. Contact us today to learn more.



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