September 2021 - Vertex Markets

Vertex Markets, a business consulting firm and A.I. B2B networking community, headquartered in Long Island, New York, is excited to announce its strategic partnership with National Business Capital, A premier & leading fintech lending marketplace to provide streamlined high-tech access to the best small business financing options for your business nationwide.

Vertex Is now providing their community members direct access to:

Term Loans A/R Financing

Business lines of credit Canabusiness Financing

Equipment Financing Hybridge SBA Loans

Plus, other financing options to help your business grow. After completing an easy 60-second application you’ll be paired with one of our knowledgeable Business Financing Advisor, who will be with you throughout the entire loan process, including helping you compare multiple financing offers, from our 75+ lenders, to find the best option and the right fit for your business needs.

Secured More Than $1 Billion In Financing for Business Owners!

Helping businesses of all sizes and credit quality, navigate through the business financing maze getting them approved for their financing needs and the right fit to grow their business.

Let us help you choose the right financing options for your business:

You’ll work with a dedicated, professional business financing advisor.
Get Matched with one of our 75+ lenders, based on your specific needs
You’ll receive Multiple Offers, With Larger Amounts, lower rates & Longer Terms.
Soft Credit Pull, Doesn’t Affect Your Credit.
Our 75+ lenders can meet all your needs from $50K to $10M
Qualify & Get Funded in as Little as 24 hours with Terms that Make Sense for Your Business.
Poor to Excellent Credit, we have a Solution for All.
# 1 Fintech Marketplace.

National Business Capital has helped business owners secure over $1 billion in financing and is strengthening local communities one business loan at a time. For every deal National funds, they donate 10 meals to Feeding America, with over 100,000 meals donated to date.

Please, click below, take a moment to watch this quick video from the National CEO to learn more about what you can expect from working with our partner, National Business Capital.

Thank You

Peter Spoleti

Vertex Markets Inc.

“We’re honored to have partnered with National Business Capital as their strategic partner to bring a premier fintech lending platform. To provide our community members access to over 75+ lenders knowledgeable professional financing advisors to guide business owners through the business financing maze, helping them to secure the best fit to help them grow their business.” —stated Peter Spoleti CEO Vertex Markets Inc.

LET US HELP

DON’T CHOOSE THE WRONG FINANCING OPTION

Work With A Dedicated Business Financing Advisor

Get Matched With The Right Lender Based On Your Needs

Receive Multiple Offers With Larger Amounts, Lower Rates And Longer Terms

Soft Credit Pull, Doesn’t Affect Your Credit

Small Business Loan Underwriting Guide: What Lenders Look For

For borrowers unfamiliar with how it works, the process of underwriting small business loans can be shrouded in mystery. After submitting the initial application, many small business owners are left in the dark when it comes to underwriting.

However, underwriting is one of the most important parts of your loan process. The underwriting process can essentially make or break your ability to secure financing.

In order to have the best shot at getting approved, you’ll have to know everything about underwriting—such as what lenders are looking for and which strategies can improve your application.

How Loan Underwriting Works

Just like a mortgage or personal loan, small business loans also go through a process called underwriting. Lenders use a mix of technology and human expertise after you apply for a loan to determine whether to approve your business for financing, for how much, and at what rates.

During the process of underwriting small business loans, lenders are trying to understand 3 things that will help them determine your eligibility.

First and foremost, lenders need to know whether your business will have the financial ability to pay back the loan plus the interest.

Lenders also need to know you’re willing to meet your financial obligations and make payments on time.

Finally, lenders want to know how your business will manage to stay afloat and make payments in case of an unforeseeable event—such as a fire, economic recession, or another revenue disruption.

These three factors help lenders to understand how your business will fare when it comes time to make payments. Depending on how you measure up, you may qualify for a number of options.

The Information About Your Small Business Underwriters Need

Lenders will look into your loan application and ask you to provide a number of documents to help them determine whether to approve your business loan. What you will be asked to submit and what the lenders will examine can vary according to the institution. However, most lenders will review the following.

Income Statements

Lenders will use your income statements to verify your revenue and understand your ability to repay what you’ve borrowed when underwriting small business loans. Many lenders will also use your income statements to determine your loan amount based on cash flow. While funding amounts vary, most small businesses can get about 10% of their annual revenue at most.

Credit Report

Lenders will check your credit report for any late payments and delinquencies to determine how willing you are to pay them back. Some businesses that have the financial means won’t always follow through with their payments. Your credit report, especially your personal credit score, will point out any potential risks.

Business Plan

How will you spend the money from your business loan? Do you expect revenue to increase in the coming months or years and why? Have you worked out how your business will repay the loan in case of an unexpected event?

Lenders will have these questions in mind when reviewing your application and look to your business plan for answers. This is generally required at banks, but not at fintech lenders like National.

Collateral

One way lenders can ensure they are paid back is by enforcing a collateral requirement. They may ask you to put up your business assets or even personal assets.

It’s also not uncommon for banks, online lenders, and the Small Business Administration (SBA) to put a general lien on your property.

However, there are plenty of unsecured loans and lines of credit that you can also qualify for in the market.

Debt-to-Equity Ratio

If your lender isn’t requiring collateral, they will most definitely be looking into your business’ debt-to-asset ratio. This is an important part of the small business loan underwriting process and will tell them whether your business has enough assets to cover your loan in case of default.

More often than not, lenders will want you to have more assets than debts, although some will approve you even with a 1:1 ratio.

What Could Affect Your Deal’s Chances of Funding (And What Can’t)

Unfortunately, there are a few things that appear as red flags to lenders during the application process which could inevitably affect your chances of funding.

Knowing the deal breakers is just as important as knowing what lenders look for. Watch out for the following:

Recent merchant cash advances or other loans that were never disclosed on your bank statements
Poor personal credit score
A criminal background history
Discovery of tax liens that were never disclosed
Recent bankruptcy (within the last year)
Discovery of unsatisfied judgements
If you maintain less than 50% ownership
A significant drop in revenue
Discovery of an undisclosed, defaulted or restructured business loan

Not all these factors will be red flags for every lender. For example, some lenders may be willing to approve you for a business loan even if you have poor credit or a recent drop in revenue. Online lenders, especially fintech lenders, are known for more flexible requirements.

Tips to Survive the Small Business Loan Underwriting Process

There’s a few strategies you should implement a few months before and during the underwriting process to have the best chance for approval. These tips can help ensure your deal pushes through and you get the financing you need.

Deposit All Your Income Into Your Business Bank Account

If you’re not reporting it, then your revenue may not take you that far.

By depositing all your monies into your business bank account—including credit card sales and cash—you’ll signal to lenders that you have enough cash on hand to meet your payments.

Depositing all your monies will also help keep your business bank account in the positive. It’s crucial to keep your account from going into the negative during the underwriting process.

Aim for More Liquidity

When it comes to underwriting for small business loans, liquidity is king. You want to show lenders you have a hefty amount of visibly liquid assets, such as cash, stocks, accounts receivable, inventory, and more. This will show lenders you have the means to repay the loan, even in the case of unanticipated challenges.

Maintain Consistent Revenue Streams

While a sudden spike in revenue is always welcomed, lenders ultimately prefer to see a consistent flow of revenue.

Make Sure Everything is Accurate

Lenders are trained to track down all documents, spot inconsistencies, and ensure everything is accurate. Don’t think you can mislead them – the underwriter will find out!

Make sure to accurately report your debt, revenue, and all your bank accounts. Remember, if the underwriter discovers something you’ve tried to hide, it could hurt your chances for approval.

Small Business Loan Underwriting Process Steps

What can you expect the underwriting small business loans process to look like? Timeframes can vary according to different types of lenders. For example, online lenders are known to be faster than traditional banks.

Make sure to ask your lender about the expected timeframe. You’ll want to ensure you’re following the tips we’ve outlined above for the entire duration of the underwriting process to give yourself the best chances for approval.

Overall the underwriting small business loans process consists of 3 distinct steps:

Application
Review
Approval

How to Survive the Underwriting Process And Get the Loan You Need

Know that different lenders are looking for different criteria. If you’re rejected for a business loan or want to consider a few of your options before agreeing to a deal, make sure to get in touch with National.

At National, we help small businesses secure the financing they need to get ahead. Whether you’re looking for a business loan or a line of credit, we provide you with the best options available in the market.

Author, Joe Camberato, CEO National Business Capital & Services.

Suggested Reading:

Structuring the Sale of Your Business

Benefits of Owning Your Business Property vs Leasing it.