What funders look for

What funding partners may review

Revenue, cash flow and ability to pay

Partners may review your deposits, revenue trends, seasonality, margins, current obligations and the cash left after operating expenses. Steady deposits into a business bank account are a large part of the picture, which is why the review usually starts with your bank statements. A profitable year doesn't automatically mean every payment schedule is affordable, and a growing business can still run short on cash.

Time in business

Your operating history shows how the business performs through busy and slow periods and changing conditions. Requirements vary by partner, so don't assume an example you read from another company applies to your application.

Bank activity and existing obligations

Partners look at average balances, overdrafts and the payments already coming out of your account. Existing loans, lines of credit, leases, tax obligations, receivables sales, liens and guarantees all affect how much cash you have and who gets paid first.

Keep a current list of what you owe and share it accurately. A payment that shows up in your bank statements but not on your application can slow the review or undermine the partner's confidence in it.

Business and personal credit

A partner may review business credit, an owner's personal credit or both. Before you authorize a credit check, ask whether it's a soft or hard inquiry, whose credit is included and at what stage it happens. Credit is one factor. On its own it doesn't decide approval or cost.

Business identity, ownership and authority

A partner needs to identify the legal business: its name, tax ID, formation details and operating address, plus the owners and anyone authorized to apply or sign a guarantee. Applicants must be 18 or older and authorized to act for the business. Names and addresses should match across the application, the bank account, tax records and formation documents.

What the money is for

Say what the funding will buy or support, how much you need and when. A clear use helps a partner judge whether the structure and term fit the purpose. The SBA's Lender Match tool likewise asks businesses to know the amount and intended use before they meet lenders. Funding is for business purposes only.

Collateral and guarantees

Some structures are secured by specific assets. Others use a general business lien or a personal guarantee. In the Federal Reserve Banks' 2026 survey of employer firms, 59% of firms with debt used a personal guarantee and 51% used business assets. Those figures describe the businesses surveyed, not a requirement for every application.

Documents that support the review

The exact list comes from the funding partner. Beyond the bank statements and details you provide to apply, a partner may ask for some of the following, depending on the product and your situation:

• Government-issued photo ID for owners or authorized signers.
• Formation, registration and ownership records.
• Business bank statements and proof that the business owns the account.
• Business tax returns and, where they apply, personal tax returns.
• Profit-and-loss statements, balance sheets and cash-flow projections.
• A current list of loans, leases, advances and other obligations.
• Accounts-receivable, accounts-payable or inventory reports, when relevant.
• Purchase orders, invoices, contracts, leases or equipment quotes that support the use of funds.
• Information needed to verify beneficial owners, references or collateral.

Use our document checklist to organize your records, but follow the partner's actual request if it differs.

How to get your application ready

• Reconcile the numbers. Revenue, balances and debt payments should agree across your statements and the application.
• Explain big changes. Prepare a short, factual note about unusual deposits, falling revenue, seasonality or one-time expenses.
• Build a careful forecast. Include the new payment alongside taxes, payroll, suppliers and your current debt.
• Send documents securely. Upload sensitive records only through the partner's designated secure channel.
• Compare before it's urgent. Start early enough to consider SBA, bank, credit union, CDFI and alternative options where they fit.
• Read before you sign. Check the funding partner's name, net proceeds, total repayment, payment frequency, fees, guarantees, liens and default terms.

Questions to ask before you authorize a review

• Which company will receive my application, and who else may receive the information?
• Is that company a direct funder, a broker, a marketplace or a service provider?
• Will there be a soft or hard credit inquiry, and when?
• Which documents do you need now, and which only after a conditional decision?
• How should I send sensitive documents, and how long will they be kept?
• Does applying create any fee, exclusivity or obligation?
• What could change the quoted terms before closing?

For Fair Square, some of the answers are simple. We're a funding marketplace, not a bank or a lender: your advisor matches your business with the lender criteria it fits, and the funding comes from the partner you choose, under their written agreement. Applying is free and creates no obligation. How it works explains what happens after you apply, and our privacy policy explains what information is collected and how it's shared.

Avoid problems you can prevent

Don't alter statements, leave out existing obligations, misstate revenue or sign blank documents. The SBA's borrower-safety guidance tells businesses not to lie on paperwork or leave signature boxes blank, and to compare offers without pressure. Stop if the funding partner, amount, payment or fees in the final documents differ from what was explained to you.

Sources

This guide uses government sources to describe general readiness factors. It is not a promise of approval.

General educational information, not financial, legal, tax or accounting advice. It does not describe guaranteed products or terms.

• U.S. Small Business Administration: General loan eligibility and borrower-safety guidance
• U.S. Small Business Administration: Lender Match preparation checklist
• U.S. Small Business Administration: 7(a) eligibility and application variation
• Federal Reserve Banks: 2026 Report on Employer Firms