So long as your business fits the general criteria (you have enough outstanding invoices to warrant a minimum purchase amount $5,000 of invoices) for invoice financing, getting approved is much easier than other types of financing. When a lender evaluates whether or not to approve your business for financing, the focus is on the vendors who pay you opposed to your businesses revenues, credit or other factors. When a lender agrees to purchase or factor your receivables, they need to be certain that the customer who is responsible to pay your invoice is reliable and not a fly by night organization. Typically lenders are looking for well known payors, opposed to smaller unknown companies.
With Lendzero, applying for invoice financing is easy:
Step 1: Click on the Get Approved button above and answer a few basic questions about your business. We will inform you about your best options and how many exist (this will set your expectations).
Step 2: After this is complete, you will be asked to create a username and password to begin your electronic loan application. This process normally takes about 6 – 7 minutes (if you have all your documents easily accessible and ready).
To complete the loan application, here is what you will need to have handy:
- Accounts Receivable Aging Report (get this from your accounting tools)
- Debt Schedule (get this from your accounting tools)
- Recent year + YTD P&L and Balance Sheet (get this from your accounting tools)
- Business TAX ID (federal tax id number, aka EIN/FEIN)
- Estimated business revenue and average bank balances
- Social security number for all applicants
- Last 3 months of business bank statements (download the PDF statements from your business bank account)
It is very helpful to download all documents as PDF documents as you will upload these during the application process.
Step 3: Once the application process is complete, we will send you the completed loan application for you to review and sign. Once you have signed for your application, the process is complete. You have officially applied and started your journey to receiving pre-negotiated invoice financing offers. Your Lendzero funding specialist will reach out to you to guide you through the remaining steps of the process, and provide the necessary guidance and support needed with the goal of successfully obtaining the proper loan.