Hazelgrove Lending Group, based in Redding, CA, explains the steps to get a business loan or other business funding: describing the purpose, preparing documents, partner underwriting, and comparing offers on total cost. This page also covers what partners look for, how long the process can take, questions to ask before signing, and warning signs to avoid.
Who does what: our part and the partner's part
Hazelgrove Lending Group is a broker, not a lender. Our part is to understand what the money is for, explain which structures fit, help you put the request together and send it to funding partners whose programs match. The partner's part is the money and the decision: it reviews the request, decides whether to make an offer, and sets the rate, term and conditions.
You are never obliged to accept an offer, and we will tell you plainly if none of the structures looks right for the purpose.
Step 1: Name the job the money must do
Call or send the form. The first conversation is about purpose and timing: payroll before a claim pays, stock for an order, a machine, a remodel, uneven months. The purpose narrows six structures down to one or two.
Compare the candidates on the pages for working capital, term loans, lines of credit and inventory financing.
Step 2: Gather the basics (business loan documents checklist)
Requirements for getting a business loan vary with each partner, but these are documents a partner may ask for:
- The business account's statements for the past several months
- Business tax returns, for longer-term structures
- A current profit-and-loss statement and balance sheet, if you keep them
- A quote, invoice or purchase order for equipment or stock
- Your business entity details and, if you use one, your fictitious business name
- A list of existing loans, advances and leases with their payments
You do not need any of these to send the form. We tell you which ones matter for your purpose before anything goes to a partner.
Step 3: Partner review (the business loan underwriting process)
Lenders and other partners look, in plain terms, at whether the business can carry the payment and what happens if it cannot. Partners read deposits and balances, time in business, revenue, existing debts, the owner's credit, what the money is for and, for secured structures, the value of the collateral.
Underwriting can include questions, requests for more documents, and sometimes a call with the owner. Answer promptly and completely; gaps in the file can slow a review.
How long does a business loan take to get? It depends on the structure, the partner and how complete the file is. No one can honestly promise a date before a partner has the documents, so plan around the purpose's deadline and start early.
Step 4: Line up the offers, then choose
Compare offers on the same footing: total amount repaid, payment amount and frequency, term, fees, prepayment terms and what is pledged. A loan is priced with an interest rate and APR; a merchant cash advance with a factor. Line them up by total cost and by the daily or monthly payment against a weak month.
Six questions to put to any partner before signing
- Adding every fee, what will I hand back in total?
- On what days do payments come out, and out of which account?
- Is there a penalty or lost discount for paying early?
- What is the partner filing a lien against?
- Must I sign personally, and how far would that promise reach?
- Which missed step would put me in default?
After you accept an offer
Accepting an offer starts the partner's closing steps: signing the agreement, any final verification such as a call to confirm details, and, for secured structures, lien filings or equipment paperwork. The money then goes to your account or, for equipment, may go straight to the seller. Read every page before signing, keep a copy, and put the payment dates in the calendar the day the agreement is signed.
Red flags that should end the conversation
- Anyone asking for a payment before an offer exists
- Promises of approval before anyone has seen your records
- Pressure to sign on the spot or to take a second advance on top of the first
- Offers that will not state the total repayment in writing
More short answers are on the FAQ page, and the full statement of our role is in the disclosures.
