United Business & Financial Services

Frequently asked questions



1.   Q:  Who is the funding source for these loans?

    A:   Funding comes from a multitude of institutional and private capital market sources located inside the United States. 


2.  Q:  Is United Business & Financial Services a part of the U. S. Small Business Administration ("SBA")?

     A:  No.  We are not part of the SBA.  We are an independent business.  We do list the SBA as a resource for assistance in obtaining and filling out documents.
It is common that limited funds can be a concern for small businesses.  We recommend the Small Business Administration or "SBA" because it offers many services for small businesses at comparatively little to no cost. If you find you need help, any resource you choose to assist you is at your discretion. 



3.   Q: How do I apply for a loan? 

     A: You must first pre-qualify for a loan by submitting your credit information from all three credit reporting agencies:  Exquifax, Experian and Transunion along with your three FICO scores from Equifax, Experian and Transunion.  If your FICO scores and credit information meet the minimum lender requirements, you may apply for a loan.



4.  Q:  How soon will someone get back to me?

     A:  After submitting your credit information from all three credit reporting agencies along with your three FICO scores, the applicant will be contacted within 48 hours.



5.  Q:  Do I have to pay any fees before applying for a loan?


     A:  
If after reviewing your credit information, we determine that you DO NOT meet the minimum lender requirements, no fees will be charged. 

However, if your FICO scores meet the 525 minimum AND your credit information meets the minimum lender requirements, we will charge you a loan processing fee.



6.  Q:  How soon will I receive funding?


     A:  Once the submitted  loan application and the required supporting documentation is received , if the loan is approved, the applicant will be contacted and the terms of the loan will be offered to the applicant.  Unless otherwise indicated, the pay out of the funds will typically happen within 30 days of the accepting of terms.



7.   Q:  Are there other fees?  What about closing costs?
    
     A: 
 If the business loan is approved.  The lender will charge a small application fee of less than $50.00
. 
Closing costs range from 5% - 10% of the loan amount.

NOTE:  Rates, Terms, Costs and Fees are subject to change.  If the applicant is approved for a loan, all rates, terms and, if applicable, any other costs and fees, will be determined per loan, per loan applicant and will be fully disclosed BEFORE any loan documents are signed.



8.  Q:  Why do I have to provide a credit report?
 And why must I access my credit information myself?


  A:  Unless otherwise indicated, all information provided on submitted loan applications must be verified by supporting documentation.  A credit report is a supporting document required by the  lender.  If any credit information is requested by any outside agency, an "inquiry" will be noted on your file.  An inquiry may result in lowering your credit score.  To maintain the business loan applicant's credit score, we require that the applicant make the request for credit information. 

NOTE:  Unless otherwise indicated, if a credit report is not submitted along with the loan application, the business loan application WILL NOT BE CONSIDERED by the lender.   



9.  Q: How do I get a credit report? 

     A: Please click on the "How To Apply" tab, located on the top or the bottom of this page for instructions.  Note:  We must have credit information from all three credit reporting bureaus or agencies:  Equifax, Experian and Transunion.  We must have all three individual FICO scores from each credit reporting bureau or agency: Equifax, Experian and Transunion.

10.  Q:  Why do I have to provide information from my paycheck?

    A:  Information from a paycheck, including the pay stub, can also be used to determine the creditworthiness of the loan applicant.  

If you are a wage earner, your regular paycheck usually includes running Year-to-Date ("YTD") earnings information.  The stub will show your gross pay for the current pay period and what has been subtracted for income tax withholding, Social Security and other deductions. Most systems provide information about how much you have earned and deductions taken so far, or year-to-date, for the year.  


NOTE:  Unless otherwise indicated, paycheck and pay stub information must be submitted along with the business loan application.



11.  Q:  What is a W-2 and why do I have to provide one?

      A:  "Form W-2" or "W-2" stands for, "Wage and Tax Statement".  Every employer engaged in a trade or business who pays remuneration, including non-cash payments of $600.00 or more for the year (all amounts if any income, social security, or Medicare tax was withheld) for services performed by an employee must file a Form W-2 for each employee.  It can also be used to determine the creditworthiness of a loan applicant.



12.  Q: Why do I need a business plan?

     A: A business plan is a formal statement of set business goals, the reasons they believe goals are attainable and a defined plan for reaching those goals.  It may also contain background information about the business and the individual or team attempting to reach those goals.

When the existing business is to assume a major change or when planning a new venture, a 3 - 5 year business plan may be required, since investors or lenders will look for their annual return within that time frame. 

NOTE:  Unless otherwise indicated, a business plan is required in order to be

considered for a loan and must be submitted along with the business loan application.


  
13.  Q:  How do I write a business plan?

      A:  There are various agencies that offer counseling, mentoring and training.  One source is the U. S. Small Business Administration.  Go to www.sba.gov. Click on the "Local Assistance" tab near the top of the page.  Follow the instructions  provided.
                   
     NOTE:  Unless otherwise indicated, a business plan is required in order to be considered for a loan and must be submitted along with the business loan application.



14.  
Q: What is an "Executive Summary"?

     A: An Executive Summary is a "snapshot" of the business plan as a whole and touches 
on your company's profile and goals.   

Unless otherwise indicated, a short Executive Summary highlighting the main points of your business plan, is needed.  

NOTE:  Unless otherwise indicated, an Executive Summary  must be submitted along with the business loan application.  



 15.  Q: What if I need help filling out the Executive Summary?


       A: There are various agencies that offer counseling, mentoring and training.   One source is the U. S. Small Business Administration.  Go to www.sba.gov and click on the "Local Assistance" tab near the top of the page.  Follow the instructions  provided.



16. Q: Why do I need a "Year-to-Date Summary" ("YTD") and/or an "Income Statement"?

       A: Many banks and lenders may require a Year-to-Date ("YTD") and/or an Income Statement (also known as a "Profit & Loss" Statement or "P & L") to determine the creditworthiness of the loan applicant.  

NOTE:  Unless otherwise indicated, a Year-to-Date ("YTD") Summary, and Income Statement must be submitted along with the business loan application.



17.  Q: What is a "Year-to-Date Summary" ("YTD")?  What is an "Income Statement"

    A: They are “snapshots “of a company’s or an individuals' earnings or profits and/or losses. 
Year-to-date earnings are interim income statements showing what an individual or company has made or lost between the start of a calendar or fiscal year accounting  period and a current date.  

  1. A "Calendar Year" begins in January of every year.  A "Fiscal Year" begins in July of of every year.


"Year-to-Date Summary" ("YTD"): Summarizes the company's net income from the start of the current accounting year until a specific date.  

For example, the year-to-date net income at May 31, 2012 for a calendar year company is the net income from January 1, 2012 until May 31, 2012.  For a company with a fiscal year beginning on July 1, 2011 the year-to-date net income at May 31, 2012 is the net income for the 11-month period from July 1, 2011 through May 31, 2012.

 "Income Statement":  A statement that summarizes the revenues, costs and  expenses incurred during a specific period of time - usually a fiscal quarter or year.   Note:  A "fiscal quarter" = three (3) months.

Banks and other lenders may require "YTD" ("Year-to-Date Summary"), Income Statement and other financial statements in determining creditworthiness in compliance with lending policies.

    BB 
Independent contractors and small businesses generally track what they're paid through some combination of Forms 1099 and invoices issued for services or goods sold. 1099's are not issued until the end of the year, so it is important for independent contractors to track their payments as they go.  

A "1099 is a tax form for independent contractors that shows how much they made from a certain business. (These forms can be ordered from the Internal Revenue Service {"I.R.S."} at www.irs.gov.)  

Profit and loss statements should be compiled on a regular basis.    Keeping accurate "YTD"  
("Year-to-Date Summary") information is important.  Whether it is a Profit & Loss ("P&L") or Year-to Date Summary ("YTD"), one or both may be required documentation for banks and other lenders.
 
NOTE:  Unless otherwise indicated, a Year-to-Date ("YTD") Summary, Income Statements must be submitted along with the business loan application.



18.  Q:  Where Can I get help putting together a "Year-to-Date Summary" ("YTD") and/or Income Statement?
   
       A:  There are various agencies that offer counseling, mentoring and training.   
One source is the U. S. Small Business Administration.  Go to www.sba.gov and click  on the "Local  Assistance" tab near the top of the page.  Follow the instructions  provided.



19.  Q:  What is a "Balance Sheet" and why do I need to provide it?

     A: A "Balance Sheet" (or "Statement of Financial Position") is a summary of the financial  balances of a sole proprietorship, a business partnership, a corporation or other business organization, such as an LLC or an LLP.  Assets, liabilities and ownership  equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a "snapshot of a company's financial condition".   
NOTE:   Unless otherwise indicated, a balance sheet must be submitted along with the  business loan application.



20.  Q:  Where do I go for help putting together my "Balance Sheet". 

       A:  There are various agencies that offer counseling, mentoring and training.  
One source is the U. S. Small Business Administration.  Go to www.sba.gov and click on the "Local  Assistance" tab near the top of the page.  Follow the instructions  provided.
  


21.  Q:  How do I submit all of the documents that are required by the lender to apply for a loan?  
       A:  After meet the basic pre qualifcations, we will send you instructions as to how send in the supporting documents required by the lender.
         
     
  

22.  Q:  Why do I have to provide so much paperwork?

    A:  In some instances, the lender may require more documentation from the applicant.  The purpose is to increase the likelihood of the loan being funded.  Thi
s is done on a case-by-case basis.   


 
23.  Q:  Do you provide access to money for businesses outside of the United States?

     A:  At this time, we do not provide access to funds for businesses outside of the United States. 



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