Business funding decisions can feel opaque, but providers evaluate a fairly consistent set of factors. What changes by structure is the weighting : which factor carries the decision.
This article walks through the five factors and how each one dominates different funding types.
The five factors
- Revenue consistency : the pattern of money in, month over month
- Time in business : how long you've been operating
- Credit profiles : business and sometimes personal
- Bank account health : balances, overdrafts, deposit frequency
- Existing obligations : what you already owe and repay
Which factor dominates which structure
Revenue dominates cash-flow structures: working capital, revenue-based, merchant-style advances. Collateral dominates asset-based structures: equipment, receivables, ABL. Credit carries more weight in unsecured and conventional structures. Property income dominates investment real estate.
Ask any provider directly what matters most in their evaluation : the answer shapes where your preparation effort should go.
How to prepare before you apply
- Organize 3–12 months of bank statements and financials depending on the structure
- Write down the exact purpose and amount you need
- Know your existing obligations and their payoff terms
- Check your credit reports for errors and dispute genuine mistakes
- Avoid applying for multiple structures simultaneously : providers share data more than borrowers expect
Frequently Asked Questions
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If this topic relates to a funding need you have, you can begin a funding request through Kennify's financing partner at any time.