At Swift Capital Options, we understand that submitting a loan application is just the beginning of the process. This guide will walk you through what to expect prior to and after you’ve submitted your application, helping you navigate the financial process with confidence.
Swift Consultation:
At Swift Capital Options we take an interactive approach to assisting our clients secure the financing they need. Our first step is to sit down with you and get a good understanding of who you are and what you are looking to achieve. This helps to understand what steps we need to take in order to get you prepared for financing. We understand each client’s financial profile is as different as their finger print so there is no way you can take a one size fits all approach to lending.
Our goal during the consultation period is to figure out what your financial strengths and weaknesses are in order to present your loan package in the best light and to also find the lender that meets your needs. For example a client might lack liquidity but may have equity in real estate that could be leveraged for approval. Some lenders prefer borrowers with excess liquidity and some prefer borrowers with excess collateral that can be used to secure the loan; our job is to review your asset profile, structure your deal and present your loan package to our lending partner that we know will get you the financing you need.
Below we will go into more detail on how the process works.
Immediate Post-Submission Phase
1. Swift Meets with Lender on your Behalf
Why do you want us to meet with the lender on your behalf
- We speak their language or some people call it “talking shop”. It’s important that your project is properly communicated to the lender in order for you to get the results you want. The better the lender understands your deal the more likely you are to get approved. I can’t tell you how many times I’ve seen a deal get declined because the lender just didn’t understand the project or couldn’t see the vision. We don’t want this to happen to you.
- We have built strong relationships with our lenders and they know if Swift Capital Options sends them a deal it must be a quality project.
- We understand the bank’s underwriting guidelines which gives us leverage when it comes to negotiating on your behalf.
14. Submit Initial Documentation
- This is a very important part of the process because the lender begins their decision process as soon as they start reviewing your first piece of information. Are your documents filled out correctly? Is the information accurate? Lenders take all of this into consideration whether it be consciously or subconsciously. Our job is to make sure that we pass this first test.
2. Initial Review
- The lender will conduct a preliminary review of your application
- This typically involves checking for completeness and basic eligibility
- Timeframe: Usually within 1-3 business days
3. Initial Questions and Request for Additional Information
- Once the lender has confirmed that the project can be financed through their institution they may request additional information for clarity and ask additional questions. It’s important that we are able to properly answer all of the lenders’ questions.
- Swift Capital Options will get in touch with you in order to get the lenders questions answered.
Underwriting Phase
6. Underwriting Process
- Underwriters will assess the risk associated with lending on your project
- They’ll review financial statements, business plans, and market conditions
- Timeframe: Can range from a few days to several weeks
- Swift will always do a preliminary underwrite on each of our projects to make sure before we send your project to a lender you have a high probability of getting approved.
Decision and Offer Phase
8. Loan Decision
- The lender will inform Swift of their decision: approved, denied, or need more information
- Timeframe: Can be as quick as a few days for some online lenders, or several weeks for traditional banks
- If you are approved and happy with the terms we will move to closing.
- If you are approved but not happy with the terms we will negotiate with the lender on your behalf. Some terms are non negotiable but that is the benefit of having access to multiple lenders. Swift Capital Options can always request a different loan program from the lender in order to get the terms that make the most sense for you at the time. For example, you may be able to get a higher LTV on a loan if you decide to go with an interest only option rather than principle and interest payments
9. Loan Offer (if approved)
- You’ll receive the terms of the loan offer, including:
- Loan amount
- Interest rate
- Repayment term
- Any fees or conditions
- Action Item: Carefully review the offer and ask questions if anything is unclear
10. Negotiation (if applicable)
- Some terms may be negotiable, especially with traditional lenders
- Action Item: If you wish to negotiate, prepare a clear, reasonable counteroffer
Closing Phase
11. Acceptance of Offer
- If you’re satisfied with the terms, you’ll need to formally accept the offer
- Action Item: Sign and return any required documents promptly
12. Final Underwriting
- The lender may conduct a final review to ensure nothing has changed
- They might request updated financial information
13. Closing Process
- You’ll need to sign final loan documents
- This may be done electronically or in person, depending on the lender
- Action Item: Read all documents carefully before signing
14. Funding
- Once all documents are signed, the lender will disburse the funds
- Timeframe: Can be as quick as 1-2 business days or up to several weeks, depending on the lender and loan type
Post-Funding Considerations
15. Set Up Repayment
- Ensure your repayment method is set up (e.g., automatic withdrawals)
- Mark important dates like first payment due date
16. Maintain Communication
- Keep lines of communication open with your lender
- Inform them of any significant changes in your business
17. Comply with Loan Terms
- Adhere to any covenants or conditions specified in the loan agreement
- This may include maintaining certain financial ratios or providing regular reports
Timelines and Variations
- Online Lenders: Often faster, with some offering approval and funding within days
- Traditional Banks: Can take several weeks to months from application to funding
- SBA Loans: Typically have longer processing times, often 2-3 months or more
If Your Application is Denied
- Request an Explanation: Lenders are usually willing to explain their decision
- Review and Improve: Address any issues highlighted in the explanation
- Consider Alternatives: Explore other loan types or lenders
- Reapply: Some lenders allow you to reapply after a certain period
How Swift Capital Options Can Help Post-Submission
We’re here to support you throughout the entire lending process:
- Application Tracking: We’ll help you stay informed about your application’s status
- Communication Liaison: We can facilitate communication between you and the lender
- Document Management: We’ll assist in organizing and submitting any additional required documents
- Offer Analysis: If approved, we’ll help you understand the terms of your offer
- Negotiation Support: We can provide guidance if you choose to negotiate terms
- Alternative Options: If denied, we’ll help explore other financing avenues
Your Next Steps
After submitting your application:
- Monitor your email and phone for communications from the lender
- Prepare to provide additional documentation quickly if requested
- Review your business finances and be ready to discuss them
- Consider your options for accepting or negotiating a loan offer
- Contact Swift Capital Options for ongoing support and guidance through the post-submission process
Remember, the loan application process doesn’t end with submission. Staying proactive and responsive throughout the subsequent stages can significantly impact your chances of securing favorable financing.
Are you ready to navigate the post-submission phase of your loan application with confidence? Reach out to Swift Capital Options today. Let’s work together to ensure you’re fully prepared for each step of the process, from addressing lender inquiries to evaluating loan offers. With our expertise guiding you, you can approach this crucial phase strategically, maximizing your chances of a positive outcome. Your business’s financial future is important – let’s ensure you’re well-positioned to secure the funding you need and deserve!
