10 Steps of the LoanBox Process
10 Steps of the LoanBox Process
Here’s what the loan process looks like on LoanBox:
Decision Direction: Determine whether you wish to navigate your LoanBox loan independently or prefer the guidance of a LoanBox Advisor. LoanBox is crafted to deliver a Carvana-like experience for business owners seeking loans. From application to funding, it provides a comprehensive suite of resources, including an AI lending assistant and support through human chat and app-to-app messaging, minimizing the need for direct human interaction. Alternatively, you can opt for a LoanBox Advisor to handle everything on your behalf.
Loan Package: Regardless of your approach, a loan package is essential. Complete a series of questions in the portal and upload your financial documents. Your responses will be converted into PDFs within your portal, forming the initial documentation required by lenders to provide a loan proposal. This package typically includes an application, personal financial statement, business plan, pro forma, and tax returns.
Package Sharing: Our matching algorithm identifies lenders you qualify for based on your loan package and responses. You can select any or all preferred lenders to grant them access to your loan package and invite them to submit proposals. Your loan package remains securely housed within LoanBox, and sharing it allows lenders to access it through the platform.
Receiving Proposals: Lenders can securely review your loan package and respond with proposals. All proposals are generated using the same offer form within LoanBox, ensuring a consistent format that facilitates easy comparison of key information.
Selecting a Lender: Click and e-sign to accept your preferred proposal. Videos and information about each preferred lender are available for review. If you are working with a LoanBox Advisor, they will guide you in choosing the right lender and explain the reasons behind your choice. Once a lender is selected, your "My LoanBox" dashboard transitions from loan packaging to loan management mode, initiating the funding process with your chosen lender. If you are using a LoanBox Advisor, they will continuously update your portal for full transparency.
Underwriting: The underwriting phase begins with a credit check. During this process, the bank analyst reviews your package, conducts a cash flow analysis, ensures compliance with required documentation, and verifies adherence to bank policy criteria. Additional questions may arise for clarification.
Approval: Approval depends on the loan amount and may require either single or dual approvers, or a committee. Once approved, you will receive a commitment letter indicating readiness for funding upon the completion of closing documents.
Closing: At this stage, all necessary documents are collected and reviewed, leading to the bank’s “clear to close” approval. LoanBox assists you in gathering these documents upfront, ensuring you are always informed about your loan's status in the process.
Funding: Sign the loan agreement documents, after which the funds will be wired to the designated recipients. The LoanBox Manager will support you throughout the process, ensuring you meet all documentation requests.
Covenants: Covenants outline your obligations as a borrower, typically involving the submission of annual tax returns and an updated personal financial statement. These requirements will be clearly displayed on your LoanBox Manager, with automated yearly reminders provided by LoanBox. The platform also facilitates ongoing documentation submissions, notifying the lender as necessary.
This article is authored by Darin Manis, founder of LoanBox.