If you have recently started a new business, it requires finding as soon as possible. You need to build the business credit; an SBA loan takes a very long time to come. Also, you are not meeting with all the criteria required for application paperwork. All these things might be indicating that opening up a business is a wrong decision and coming out to be trouble for you. Well, you might not be realized, but you have several options available. Before understanding the loan application process, you need to know what you can expect. Have a look below to understand everything about commercial loan

Steps Of Getting A Commercial Loan

If you talk about a commercial loan, it’s as simple as taking out a personal loan, home loan, or anything of that sort. Here are the steps

  1. You should be aware why you need the money
  2. Go to your commercial lending options
  3. Look for the one you qualify for
  4. Begin the application process
  5. Either you will face approval or denial

Commercial Loan Underwriting

Do you remember the underwriter when you bought your home? This person has all the rights and power to approve or deny your loan. A commercial loan underwriter gathers all the information and analyzes it in order to determine whether you are worth getting the credit or not. Based on this criteria only, your application will be approved or denied


Once your loan application reaches to the lender, the process of underwriting begins. There is this underwriter who reviews your application. He might make use of commercial loan underwriting software to analyze your application properly and find out whether you are eligible or not. Have a look at some products that are used for online lending:

Merchant Advances

A merchant advance will help you receive a lump sum of cash, and you have to pay the loan back via your everyday credit card sales percentage. The commercial loan underwriter will need three months of your bags statements. So if you do not sell a product or you have not started the business three months before, this option will not work for you

Line Of Credit

Having a strong business and personal credit can help you go for this option. It works like a credit card, and you will get the requested find quickly without Hell lot of paperwork. At times underwriters may need your bank statements, but others decide it entirely based on personal and business credit

Term Loan

Do you remember the standard bank loan? This process is very similar to that. You will have to to go through you too much of documentation for underwriting

It may include

  • Last two years of the income tax returns.
  • Bank statements for your business.
  • Documents related to business organizations to prove that you are the owner. You can provide a partnership agreement or LLC agreement.
  • Income statement
  • Business balance sheet

It is a very tedious and daunting process, and that is why it is always recommended to take help from some experts who can help you apply for a loan and give you a suitable option for you.

As you can see that the commercial loan underwriting is a drawn-out process so you should be careful while choosing underwriting as a career. And obviously, if you are a new business owner, you do not have time to wait for months to get a loan. At Deciphercredit.com, we help you in all the steps from loan origination to underwriting to closing. Why are you still waiting? Reach us and let us guide you in cultivating relationships with customers.