Fixed-Term Loan Next Steps
Fixed-Term Business Loan - Approval Process
The process of qualification, then approval and then getting the wire transfer of a fixed-term loan typically takes 5-7 days. This is very fast when compared to many other forms of financing.
1 - Pre-Qualification
1 page application sent (more information about pre-qualification stage). Takes 5 minutes to 1 day, typically.2 - Qualification
Bank and merchant statements are sent and reviewed. This stage takes 1 day typically and can be combined with the pre-qualifaction stage. Once qualified, you will receive notification and an email or fax of the contract.
3 - Passed Review / Contract Phase
At the contract phase, you will receive a contract to sign and send along with other requested documents. Some of the documents may take some time to gather, so please familiarize yourself with the group of typical documents. This takes about 1 hour to 1 day, and depends on your review time and the response time from other parties such as your landlord, if applicable.
4 - Account Set-Up
To enable automated payback, either ACH withdrawal or transfer accounts will be set up. These will then be tested to make sure the mechanism works properly. You will be contacted to ensure the terms of the loan are clear, as well. This takes typically 1 to 5 days.
5 - Loan is made
Once accounts have been set up and verified to be working as expected, a wire transfer will be made. Up to this stage, the loan is not formally considered to be approved.
6 - Payback
During this phase, the accounts that were set up collect a fixed dollar amount for each working day of the business, which are typically weekdays. The payback term is determined as a fixed number of payments and the whole payback amount that was agreed upon, typically, must be paid back. Various fees and conditions apply if payments are not made.
7 - Follow-On Funding
Once the loan is paid off successfully, it is typical that credit agencies will receive notification of such, which is helpful the business' rating. As such, it is possible that this may lead to more financing options being made available your business. Additionally, upon successful payback, or even during the payback phase, you may request additional capital.
Learn more about fixed-term business loans
- The documentation for obtaining a Fixed-Term Business Loan
- Description of the fixed-term business loan
- Comparison of fixed-term business loan to a business cash advance
- Rate calculators and rate comparisons for fixed-term business loan
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