Glossary of Terms

Loan Readiness

Definition

Loan Readiness refers to a small business’s ability to successfully apply for and secure financing based on its financial health, creditworthiness, and compliance with lender requirements. It involves preparing necessary documentation, optimizing financial metrics, and ensuring eligibility for loan programs like SBA 7(a), 504, and Microloans.

Why is it important to SBA Lending

Many small business loan applications are delayed or denied due to incomplete or inaccurate documentation, poor credit history or weak financial performance, lack of understanding of SBA loan requirements.

Improving loan readiness increases approval rates by ensuring businesses meet key lending criteria, reduces processing delays by streamlining documentation and financial preparation as well as enhances borrower confidence through education on loan expectations.

What role does Parlay Play

Parlay’s Loan Intelligence System (LIS) enhances loan readiness by:
-Providing real-time feedback on missing or weak application components.
-Offering AI-driven guidance on improving financial standing before applying.
-Identifying loan alternatives for businesses that may need a different funding path.

By improving Loan Readiness, Parlay helps more small businesses qualify for financing, reducing denials and increasing successful loan closures.