Frequently Asked Questions

Great question! A term sheet is an expression of interest from the lender, indicating they’re open to exploring your loan request further. This initial document means the lender has reviewed your information and sees a potential fit, but the depth of review varies—some lenders conduct thorough pre-term sheet assessments, while others simply check if your request aligns with their general credit criteria.

A commitment letter, on the other hand, is a firm offer to lend. By this stage, the lender has fully vetted your request and is making a formal offer to extend credit. It’s important to remember that a term sheet doesn’t guarantee approval. Some lenders may present an appealing term sheet to secure the deal but later adjust rates or terms after a deeper review.

I suggest you check out Tips for Getting Funded Page.  But, to answer your question, a business plan is crucial for an SBA loan. It’s one of the first documents lenders and SBA reviewers assess to understand your business model, financial projections, and growth potential. A well-prepared business plan demonstrates that you’re organized, knowledgeable about your industry, and committed to your business's success. A strong plan can significantly improve your chances of approval by answering common underwriter questions and instilling confidence in your ability to execute your strategy. 

 Lenders require detailed financial documents to assess your business's ability to repay the loan. Reviewing tax returns, financial statements, and projections helps lenders evaluate cash flow, debt levels, and financial health. This information is essential for determining the risk associated with lending and ensures you’re capable of sustaining loan payments, ultimately protecting both the lender and the borrower. 

 Most lenders and the SBA specify how loan proceeds can be used. Typical uses include working capital, equipment purchases, inventory, real estate, and refinancing debt. It’s essential to provide a clear breakdown of how funds will be used in your loan application, as vague descriptions like “working capital” may not be sufficient for approval. Being transparent about your funding needs helps lenders understand your goals and ensures the loan meets SBA and lender guidelines. 

We recommend you complete our business funding questionnaire and schedule a complimentary consultation with a member of our team.  We can help you prepare for the conversation with your lender and make sure you put your best foot forward.  We want you to succeed, even if you don't hire us.  We are small business owners too!

There are several factors that go into determining qualification and ultimately approval.  Some of the things to consider are: length of time since business was established, business' credit rating, owner's personal credit history, debt service coverage, quality of collateral, business revenue trends, industry trends, liquidity, lender's portfolio concentration, lender's appetite, banker's experience, etc. 

Simply put, Debt Service Coverage is a ratio that measures cash flow.  A lender will compare both business and personal debt to business and personal income.  The higher the ratio, the stronger the cash flow.  

Annual Income available to service debt divided by long and short term debt annual payment.

Not necessarily.  Lots of business owners have successfully navigated the business lending process.  We are here to help business owners that fall into one of more of these categories: first time borrowers that aren't familiar with the process,  business owners that don't have an established relationship with an experienced business banker, business owners that are too busy or not interested in filling out all the forms that go along with a business funding application, business owners that have navigated the process before and would rather outsource the bulk of the process and business owners that want to find the best and quickest path to funds.  If you fall into one of one of these categories, let's chat. 904-830-6747 or complete the business funding questionnaire and set up a free 45 minute consultation. 

Absolutely!  If you already know what you need and where you plan to apply, one of our consultants will complete all applicable forms and applications requested by your lender: Application, Personal Financial Statement, Debt Schedules, Tax verification forms (4506t or 4506c), Tax Payer Consent Forms, Attestations, etc. 

It depends on the reason for the decline.  In some cases, loans can be declined by one lender but approved by another.  Different lenders have different appetites. If the decline was based on poor credit or lack of cash flow, you may need to wait until your situation improves or consider an alternative funding source.  We are happy to offer a free consultation to determine your next steps. 

The type of credit product and term should be based on the purpose.  For example: A line of credit might be the best option if you have a short term or a seasonal borrowing need.  A loan is usually a better option if you are purchasing an asset that has the ability to pay for itself over time (equipment or real estate, etc.) If a loan is the right choice, be sure your term doesn't exceed the life expectancy of the asset.