Data security is always a top priority, both for sensitive business information and personal details. That’s why it’s always a good idea to make sure any software product, company or platform that uses sensitive information is reputable and trustworthy before sharing your data.
Just like personal loans, identity verification and a financial history review are crucial parts of the small business loan application process. Read on to learn more about how OnDeck provides a safe lending experience, as well as other common application questions.
What Documents Do I Need to Apply for a Small Business Loan?
Whether you apply for an online small business loan or seek funding through a bank, small business lenders need to verify an applicant’s information and financial history. In addition to basic personal information of all owners, the following documents are helpful to have when applying for a small business loan:
- Business financial statements, ideally dating back the last 3 years where possible. These should include reports such as a profit and loss, expense and income.
- Ownership and/or affiliation agreements, where applicable
- Business and personal income tax returns of all owners for at least the past year
- Business certificates, licenses and permits
- Business leases for rental spaces and/or equipment
Why Do Business Lenders Ask for an Owner’s Personal Financial Information?
Small business lenders may need to verify personal financial information of all owners, depending on factors such as the organizational structure, number of years in operation, financial history and income. This helps business creditors make more responsible lending decisions. Additionally, business creditors may ask for a business owner’s personal information because the business loan may require the business owner(s) act as personal guarantors.
Is It Safe to Share Sensitive Information With an Online Business Lender
Small business lenders, banks and other financial institutions have a big responsibility to secure and protect sensitive data. Trustworthy online business lenders use leading technology to provide a safe and secure lending experience. Additionally, reputable financial institutions take measures to protect sensitive data through website security and encryption.
Why is the Business Loan Application Process Faster With Online Lenders?
Some small business funding options have lengthier applications and processing periods, like SBA and bank business loans. On the other hand, online lenders like OnDeck strive to provide fast and convenient access to small business loans using the latest financial technology. In addition to a quick application process, OnDeck uses secure cloud technology for a faster review process.
What is a Financial API?
When you use certain types of financial technology, like peer-to-peer payment services, budgeting software and online small business loans, a specific type of technology is required for a seamless and secure connection to your business bank account. This technology is also called an application program interface, or an API. One of the leading names in secure API software is Finicity. OnDeck uses Finicity to provide a safe, encrypted and seamless connection to your business bank account.