What Happens After You Submit an Application?

Once you’ve submitted your funding application with FundLocal, the process moves quickly toward approval, fund disbursement, and helping your business access the capital it needs. To give you a clear idea of what to expect, here’s a step-by-step guide on what happens after you submit an application.

After you submit your application and provide the necessary documents (such as business bank statements and personal details), our team will begin reviewing your information.

• Time to Review: Typically, the initial review takes a few hours to one business day. We aim for fast processing to ensure you can access funds as soon as possible.

• What We Review: We will evaluate your business’s financial health, focusing on factors like:

  • Revenue consistency: Are your bank statements showing steady deposits?

  • Cash flow management: Do you have sufficient daily balances to handle repayments?

  • Owner details: We review your personal information to verify your identity and assess your creditworthiness.

In some cases, we may perform a soft credit check to gain additional insight into your credit history. A soft inquiry does not affect your credit score and will not show up on your credit report as a hard pull.

• Why It’s Needed: A soft credit check helps us ensure your business is in good standing and further verify your ability to repay the loan or manage a line of credit.

• No Impact on Your Credit Score: This is a risk-free step and won’t affect your credit in any way.

Sometimes, we may need additional information to finalize your application. If that’s the case, a member of our team will reach out to request any extra documentation or clarifications.

• Examples of Additional Documents:

  • Updated bank statements (if the ones provided don’t cover the necessary time period).

  • Clarification on your business’s cash flow patterns or expenses.

  • Additional financial documents, such as tax returns or profit and loss statements, if necessary.

• Respond Quickly for Faster Approval: The quicker you provide any requested documents, the sooner we can move your application forward.

Once your application is reviewed and all necessary documentation is verified, you will receive an approval decision. This usually happens within a few hours to the next business day, depending on the complexity of your application.

• Approval Notification: You will receive notification of your approval status via email or phone. If approved, you will also receive the final loan or line of credit offer, including:

  • Approved loan amount: The total amount of funding available to you.

  • Interest rates and fees: A clear outline of the interest rate and any applicable fees.

  • Repayment terms: Information on how and when payments will be due.

• Next Steps: If approved, you can choose to accept the offer by signing the loan agreement electronically.

If you decide to move forward with the funding, the next step is to sign the loan or line of credit agreement. This contract will clearly outline the terms of the funding, ensuring transparency in the process.

• Electronic Signature: The agreement is typically signed electronically, making the process quick and convenient.

• Review Terms Carefully: Before signing, make sure you fully understand the terms of the loan, including the repayment schedule, interest rates, and any fees.

After signing the agreement, you’ll need to participate in a verbal verification call. This is a standard procedure to confirm your identity and ensure that you fully understand the loan terms before the funds are disbursed.

• Quick and Simple: The call usually takes about 5-10 minutes and will cover key details, such as confirming your identity, business information, and the terms of the funding.

• Why It’s Important: This step helps us verify that everything is correct and ensures that you’re comfortable with the funding arrangement.

Once the verbal verification is complete, your funds will be transferred directly to your business checking account. In most cases, you’ll have access to the funds within one business day after final approval.

• Fast Transfer: The funds are typically disbursed quickly, so you can begin using them to support your business needs.

• Flexible Use: You can use the funds for any business-related expenses, such as managing cash flow, covering payroll, purchasing inventory, or investing in equipment.

After you’ve received the funds, you will begin repaying the loan or line of credit according to the terms outlined in your agreement. The repayment structure will depend on the type of funding you received (e.g., business line of credit, equipment financing, or working capital loan).

• Repayment Schedule: The repayment schedule will be clearly outlined in your agreement. It may involve monthly or weekly payments, depending on the terms.

• Interest Payments: You will only pay interest on the amount borrowed in the case of a line of credit, while other loans may have fixed repayment terms.

• Payment Options: FundLocal offers flexible payment methods to help you manage your cash flow and make repayments easily.

At FundLocal, we’re committed to supporting your business even after the loan is disbursed. If you have any questions about your repayment plan or need assistance with managing your loan, our support team is here to help.

• Payment Management: We can assist with setting up payments or adjusting repayment schedules to better align with your business’s cash flow.

• Additional Funding: If your business needs additional funding in the future, you can apply for a new loan or request an increase in your line of credit based on your repayment history and financial health.

• Customer Support: We provide ongoing support to ensure you have the tools and guidance you need to manage your loan effectively.

Once you’ve received your funding, it’s important to keep a close eye on your cash flow and repayment schedule to ensure smooth operations. Here’s what you should focus on after disbursement:

1. Managing Your Funds: Use the funds strategically to cover business expenses, invest in growth, or manage cash flow.

2. Monitoring Your Repayments: Stick to your repayment schedule and monitor your payments to avoid missed or late payments, which could affect your business credit.

3. Building Business Credit: Timely repayment of your loan or line of credit can help improve your business credit profile, making it easier to access larger financing options in the future.

4. Ongoing Financial Management: Stay in touch with our support team if you encounter any challenges or need advice on managing your funds and repayments effectively.

At FundLocal, we pride ourselves on offering fast, transparent, and flexible funding solutions for small businesses. Our streamlined process ensures that you can access the capital you need quickly, with ongoing support every step of the way. Whether you’re applying for a business line of credit, equipment financing, or a working capital loan, we’re here to make the process as simple and stress-free as possible.

If you’re ready to take the next step or need assistance after submitting your application, feel free to reach out to our support team for personalized help!