How to Request Additional Funding or Credit Increases

If your business needs extra capital, FundLocal offers a streamlined process for requesting additional funding, whether you’re looking for a loan or an increase in your line of credit. Here’s how the process works:

Step 1: Review Your Current Loan or Credit Line

Before requesting additional funding, log into your FundLocal online portal to review your current loan or credit line details. Understanding your existing balance, available credit, and repayment history will help you determine how much additional funding you need.

• Check your current limit: For a business line of credit, see how much of your available credit is currently in use.

• Review your repayment history: Ensure that you have been making on-time payments and managing your current financing responsibly, as this will strengthen your case for additional funding.

Step 2: Contact FundLocal to Discuss Options

Once you’ve assessed your current financing situation, the next step is to contact FundLocal’s support team to discuss your funding needs. You can reach out through the online portal or by phone.

• Specify your funding request: Whether you need a specific loan amount or want to increase your line of credit, be clear about how much additional funding you require and why.

• Provide details: You may be asked to provide an explanation of how the additional funds will be used. For example, you could specify that the funds will be used for inventory, equipment, payroll, or debt consolidation.

Step 3: Submit Updated Financial Information

To support your request for additional funding, FundLocal may require you to submit updated financial documents. This helps verify your business’s financial health and ensures you meet the eligibility criteria for a new loan or credit increase.

• Required Documents:

  • Recent business bank statements (usually 3-4 months)

  • Revenue reports or profit and loss statements

  • Other financials, such as tax returns or cash flow statements (if applicable)

Step 4: Receive a New Funding Quote or Credit Increase Offer

Once your financial information is reviewed, FundLocal will provide you with a no-obligation funding quote or a credit increase offer. This will outline the new terms, including the loan amount or credit limit, interest rates, fees, and repayment terms.

• New Loan Offers: If you’re requesting additional funding in the form of a new loan (e.g., a working capital loan or equipment financing), you’ll receive a quote for the loan amount with the repayment details.

• Credit Increase Offers: If you’re requesting a higher credit limit on your business line of credit, you’ll receive an updated credit limit and any changes to your interest rates or fees.

Step 5: Accept or Decline the Offer

After reviewing the new funding offer, you can either accept or decline the proposal based on your business needs.

• Accept the offer: If the terms are agreeable, you can move forward by accepting the offer through the online portal or contacting the support team.

• Decline the offer: If the terms don’t fit your current needs, you can decline the offer without any obligation.

Step 6: Access Your Additional Funding or Credit

Once you accept the new funding or credit increase offer, the funds will be disbursed to your business checking account. If you’re increasing your line of credit, the additional credit will be made available in your account for future draws.

• New Loan: For a working capital loan or equipment financing, the funds will be transferred directly to your business account, typically within one business day.

• Line of Credit Increase: For credit line increases, the additional credit becomes available immediately for withdrawals as needed.

To qualify for additional funding or a credit limit increase, FundLocal considers several key factors. Here’s what lenders typically look for:

1. Business Performance and Revenue Growth

One of the most important factors is your business’s current financial health and revenue growth. Lenders want to ensure that your business generates enough income to manage the new debt or credit limit.

• Revenue Consistency: Demonstrating steady or growing revenue improves your chances of securing more funding.

• Cash Flow Management: Positive cash flow is a sign that your business can handle additional financing without overstretching its resources.

2. Repayment History

Your repayment history on existing loans or credit lines plays a significant role in determining whether you qualify for additional funding. Businesses that have consistently made on-time payments and managed their financing responsibly are more likely to qualify for new loans or credit increases.

• Good Track Record: Lenders view businesses with a solid repayment history as lower risk, making it easier to approve additional funding.

• Missed Payments: If you’ve missed any payments, you may want to focus on improving your repayment habits before requesting more financing.

3. Current Credit Usage

For businesses with a line of credit, how much of your current credit limit is being used will affect your ability to request a credit increase. If you’ve used a significant portion of your available credit, lenders will want to ensure you can responsibly manage a higher limit.

• Low Credit Utilization: Keeping your credit usage below 30% of your total limit can improve your chances of getting an increase.

• Maxed Out Credit: If you’re close to your current limit, lenders may view this as a sign of financial strain, so it’s important to manage your credit usage wisely.

4. Updated Financial Documents

When requesting additional funding or a credit limit increase, you’ll need to submit updated financial documents to show that your business remains financially stable and capable of managing more debt.

• Business Bank Statements: Most lenders, including FundLocal, will require at least 3-4 months of recent business bank statements.

• Revenue Reports: These help verify that your business continues to generate enough income to qualify for more financing.

Increasing your credit limit or securing additional funding comes with several key benefits for your business:

1. Greater Financial Flexibility

Having access to more funds allows your business to handle larger expenses, invest in growth opportunities, and navigate cash flow challenges without needing to reapply for new financing each time.

• Example: If you secure a higher credit limit, you can draw on that credit multiple times as needed, giving your business flexibility to manage ongoing expenses.

2. Potentially Lower Interest Rates

If your business has grown or improved its financial standing since the original loan or credit line was approved, you may qualify for better terms, including lower interest rates on the new loan or credit increase.

• Example: Lower interest rates reduce the overall cost of borrowing, allowing your business to save on interest payments.

3. Easier Cash Flow Management

Additional funding or a higher credit limit can help smooth out cash flow fluctuations, ensuring that your business has the resources it needs to cover operational expenses, payroll, and other ongoing costs.

If you’re ready to request additional funding or want to explore increasing your credit line, FundLocal’s support team is here to assist. Reach out today to discuss your options and learn more about how to secure the financing your business needs to grow!