PROFITTHEORY

Business loan requirements

Business loan requirements and how to apply

Most lenders weigh the same few things: whether the business's cash flow can repay the loan, the owners' credit history, time in business, collateral, and a clear use of funds. Preparing these before you apply speeds the process and avoids repeated document requests.

Build my lender-ready package Check your debt coverage

Estimates only. Results vary. No guarantee of approval, rates or savings.

Profit Theory is not a lender. Providers make all funding decisions; approval is never guaranteed.

What lenders look at

Every lender has its own policy, but most review:

  • Repayment ability: historical and projected cash flow versus the new payment (debt service coverage).
  • Credit: personal and business credit history of the owners.
  • Time in business and industry experience.
  • Collateral and personal guarantees.
  • Use of funds and how the loan improves the business.

The application process

1) Decide what you need and why. 2) Gather financials. 3) Estimate the payment and coverage. 4) Choose loan types that fit. 5) Submit a complete package. 6) Respond quickly to underwriting questions. Your financing specialist helps owners prepare steps 1–5 so the lender sees a clear, consistent story.

Run the numbers

Blue = you enterGreen = calculatedGray = assumptionAmber/red = check this
$

Net income + interest + depreciation/amortization + documented add-backs.

$
$
$
%
years
x

Debt service coverage (DSCR)

2.64x

Meets your 1.25x target.

Debt / EBITDA

2.17x

New annual payments

$77,639

Max new loan at 1.25x

$1,313,781

Each lender calculates cash flow and coverage its own way. Educational estimate, not a credit decision.

Build my financing planOr talk it through with your financing specialist →

Estimates only. Results vary. No guarantee of approval, rates or savings.

Estimates only. Results vary. No guarantee of approval, rates or savings.

Talk with a financing specialist

Common questions

What credit score do I need?

Requirements vary widely by lender and loan type. Cash flow and the overall package matter as much as the score.

How long does approval take?

It depends on the lender and program. A complete package usually moves faster. Lenders decide timing.

Is Profit Theory a lender?

No. We help you prepare and, with your consent, introduce you to selected lenders who make all credit decisions.