Best Practices for Connecting with Approved Lenders

A lender can spot a weak file in the first five minutes of a call. Numbers do not line up, the purpose sounds vague, and key documents are missing. The conversation then shifts from funding to cleanup tasks.

Those early signals can stretch a simple process into months of follow up. Tools such as Sbarates can help you compare SBA lenders by industry and loan type before you reach out. With a tighter shortlist, your calls stay focused on fit, terms, and timing.

Start With A Fit Screen Before You Reach Out

Approved lenders can offer the same SBA program yet run very different intake rules. Some avoid certain industries, while others cap loan sizes or prefer longer operating history. A fit screen saves time for both sides.

Start by matching your purpose to the right program and lender appetite. The SBA loan programs page helps you confirm common uses and limits before outreach begins. That reference keeps your request grounded in program rules, not guesswork.

Use five filters to reduce your list before you schedule calls. Focus on loan purpose, target amount, location, time in business, and borrower profile. If a lender does not align on two of those points, move on.

Before you book calls, write answers to these prompts:

1. State the loan purpose, the amount, and the business outcome you expect within twelve months.

2. Note your last twelve months revenue and your average monthly cash flow after operating costs.

3. List ownership percentages and who will sign, including any personal guarantees the lender requires.

4. Describe your cash contribution and where it sits today, including account type and balance.

   
   

Build A Clean Package That Answers Early Questions

Many calls slow down because the owner brings a story instead of a complete file. A clean package lets the lender test risk fast, then focus the call on fit and terms. It also cuts the email loop that happens when documents arrive in random order.

Put your financials in lender order

Start with a current profit and loss, balance sheet, and year to date figures that match your bank activity. Add the last two years of business tax returns, plus personal returns if the lender asks for them. If you use bookkeeping software, export reports with the same date range across all statements. Make sure names, entity type, and EIN are consistent across every file.

Write a use of proceeds that matches timing

List each spend item with a dollar amount and a short purpose line. Include when you will spend it, and who gets paid, because lenders want to see the cash path. If you are buying equipment, attach quotes and model numbers, not a rough estimate. If working capital is part of the request, explain what it covers, like payroll gaps, inventory cycles, or seasonal ramp up.

Explain your debt and obligations with clarity

Create a one page debt schedule showing each lender, original balance, current balance, monthly payment, and maturity date. Include credit cards, equipment notes, merchant advances, and any personal loans tied to the business. If you have leases, list term length and monthly payment, since they affect coverage. If any payments are past due, note the reason and the current status in one clean sentence.

Support your story with proof, not opinions

Write a short business summary that matches the numbers and avoids broad claims. Name your core customer, your sales channel, and what drives repeat revenue. Add two risks that are real for your business, then show how you reduce them with process, contracts, or reserves. If you have customer concentration, show top clients by percent of revenue and any contract renewal dates.

Prepare ownership and entity documents upfront

Approved lenders often pause when entity papers arrive late or do not match the application. Include your articles, operating agreement, and a current ownership breakdown by percentage. Add copies of IDs for all owners who will guarantee, plus any business licenses required for your industry. If you operate under a DBA, include proof, and confirm the legal name that appears on bank statements and tax returns.

Ask Questions That Confirm Authority And Speed

“Are you approved” is not the right question, because approval can mean many things. A stronger approach is to confirm authority, workflow, and a decision timeline. That keeps you from chasing a route you did not expect.

Ask who underwrites the file and where final credit sign off happens. Ask what they need before they can issue a term sheet, and how they define a complete package. Ask what typically slows closing, so you can prevent delays early.

Fees and third party costs should come up early, so you compare offers before time pressure sets in. The FDIC’s consumer loan guidance explains how lenders may charge and deduct fees, and what those line items can mean. Use that as a plain language reference when you ask which fees are fixed, optional, or refundable. When you label costs the same way across quotes, it gets easier to compare total cash outlay.

Use questions that produce measurable answers:

• What is your average time from complete file to credit decision for requests like mine.

• What conditions most often delay closing, and which of those can I control this week.

• What collateral do you expect, and how do you value it for this program.

• What rate structure do you use, and how often can it change after closing.

  
  

Track Each Lender Conversation Like A Project

Once you have two to four active lender conversations, follow up can get messy fast. Treat the process like a project with dates, owners, and a single tracker. That approach keeps you responsive without sending daily nudges.

Create a simple table with lender name, contact, items requested, date sent, and next step. Add a column for blockers, such as missing statements, appraisal timing, or entity documents. Update it after every call, even if nothing changed.

Keep follow up emails short and structured, with three clear lines. Note what you sent, what you still owe, and the next date you will check in. If third parties are involved, name them and include the expected delivery date.

If a lender says no, ask for the reason in one sentence. Common reasons include weak cash flow coverage, thin equity, credit issues, or missing documentation. A clear reason helps you improve the file instead of guessing.

One Habit That Keeps Momentum After The Call

Before you hang up, restate the next step in one sentence and confirm the date. Repeat the exact documents you will send and what the lender will do after review. This small habit protects progress when your week gets busy.