How to Qualify

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With IOU Central Qualifying for a Small Business Loan is Easy

IOU Central was created for small businesses with strong cash flows in need of immediate funding. We help small businesses obtain financing without having to deal with the more deliberate procedures necessary when dealing with traditional financial institutions.

And best of all, business owners do not have to put up outside collateral to qualify for a loan.


Here's what you need to qualify…

  • Own 80% or more of your business (50% if owned with a spouse)

    You must own and operate your business.
  • Have been in business for at least 2 years

    You must own a business or have recently purchased a business that has been in operation for a minimum of 2 years.
  • Have an average bank account balance of $3,000 per month

    You must have a minimum average ending balance of $3,000 per month.
  • Have a separate business bank account

    In other words, your personal bank account must be separate from your business bank account.
  • Operate a store-front or internet business that has daily sales

    Examples include florists, food markets, and specialty stores that have steady cash flow and a diversified customer base with a lot of small ticket transactions. Typically our customers have annual sales of at least $300,000.

Our Approach

We believe that the whole is worth more than the sum of (any of) its parts.

Most lenders, whether they be public or private, require a great deal of documentation in the loan request process, but essentially rely on the individual strengths of a subset of benchmarks to determine the credit-worthiness of a borrower: current credit score, longevity, liquidity and short term likelihood of bankruptcy.

Certainly there is a basis for this loan-qualification methodology, however the number of exceptions and deviations that it does not account for end up all but removing humans from the equation. What if the credit score doesn’t yet reflect a large repayment of debt? What if a borrower has owned successful businesses in the past, but has only operated their current business for a year? What if cash flow statements can’t accurately reflect how a business will respond to an increase in funding? How do you account for the differences between one type of business and the next?

If it all these questions sound...practical, rational, well-reasoned....that’s because they are. And we’ve heard them before. Our approach in assessing credit qualification stems from years of collective experience in the credit and loan industry, and front-row seats to the collapse that has made it so difficult for credit-worthy small businesses to secure loans today.

We learned that underwriting systems too often dismiss a borrower’s prospects for success simply because one or another of its criteria were not met, regardless of why or the capability of the whole picture to compensate for an inequity.

We chose to buck the trend by looking at a bigger picture — one that we feel better represents a borrower’s financial reality. We assign our own credit-grading system based on a borrower’s Vantage Score (an average of scores from the three major credit reporting agencies) and with a BNI Score (an Equifax-generated prediction of bankruptcy probability), then consider a potential borrower’s entire credit history in conjunction with percentage ownership of the business, monthly bank account averages, and the separation of business and personal accounts.


READY TO GET STARTED ?

APPLY FOR A LOAN
or contact us at
1.866.217.8564