Getting Financing for the First Time: What to Have Ready
Having your paperwork in order is the easiest way to keep things moving. Here is what funders usually look at, what to gather, and what to watch out for.
Who this is for
This guide is for an established business with revenue that is using outside financing for the first time.
What funders usually look at
- Time in business. How long you've been operating.
- Monthly deposits. How much money moves into your business account each month.
- Bank statements. The day-to-day picture of your cash coming in and going out.
- Ownership. Who owns the business and who can sign for it.
Every funder sets its own requirements, so treat this as a typical list, not a rulebook.
Your complete-file checklist
A complete file tends to mean fewer follow-up requests. Typically funders ask for:
- Business ID. Your EIN.
- ID for each owner. A government-issued photo ID.
- Business bank statements. Usually the last 3 to 6 months.
- A voided check or your bank details. So funds can reach the right account.
- Proof of ownership or a business license. Sometimes, when asked.
Not every funder needs every item, and some may ask for something extra. Think of this as the usual starting set.
How the credit check works
Checking options here won't affect your personal credit. A funder may pull your credit later in the process. Ask before you agree to it, so it never comes as a surprise.
Personal guarantees
A personal guarantee is a promise that you, personally, will cover what the business owes if the business can't. Some funders require one. It's common, but it means your own assets can be on the line.
Read yours before you sign, and make sure you understand what it covers.
From application to funding
- Gather your documents using the checklist above.
- Apply and compare. Look at what's available in plain dollars.
- Review the paperwork. Read the total payback, how payments work, and any guarantee.
- Sign and verify. The funder confirms your details, then sends the funds.
How long each step takes depends on the funder and on how complete your file is. Nobody can honestly promise a timeline up front.
Other options to consider
Revenue-based funding isn't the only route. Depending on your situation, you could also look at:
- A bank or SBA loan. Often lower cost, but usually slower and stricter about history.
- A business line of credit. Flexible borrowing you draw on as needed.
- Equipment financing. Money tied to buying a specific piece of equipment.
- Waiting and building history. More time in business can widen your choices.
To compare, read MCA vs. term loan and is an MCA a loan.
Red flags
- Promised approval. Anyone who says you'll be approved before looking at your business.
- Upfront fees. Be careful about paying before you've seen written terms.
- Pressure to sign fast. A real offer will still be there after you've read it.
- Terms that don't show total payback in dollars. If you can't find it, ask.
To read the price properly, see how factor rates work.
See your ballpark in two minutes
Answer a few questions and we'll show you a plain-dollar estimate before we ask for anything else. No sales call, and checking won't affect your personal credit.
Get my funding optionsCommon questions
Who is this guide for?
An established business with revenue that is using outside financing for the first time. It is not for pre-revenue startups, because funders in this space look at your sales history.
What do funders usually look at?
Typically time in business, monthly deposits, recent business bank statements, and who owns the business. Each funder sets its own requirements.
What documents should I have ready?
Typically a business ID such as your EIN, ID for each owner, the last 3 to 6 months of business bank statements, and a voided check or your bank details. Proof of ownership or a business license is sometimes asked for. Not every funder needs every item.
Will checking my options affect my personal credit?
Checking options here won't affect your personal credit. A funder may pull your credit later in the process, so ask before you agree to it.
What is a personal guarantee?
It is a promise that you, personally, will cover what the business owes if the business can't. Some funders require one. Read yours before you sign.
How long does it take to get funded?
It varies by funder and by how complete your file is. A complete file usually means fewer back-and-forth requests, but no one can honestly promise a timeline in advance.