Step by Step: StreetShares Business Loan Application in Real Time

Editor’s note: NerdWallet’s Step by Step series gives small-business owners a behind-the-scenes look at the loan application processes of various online lenders. We show you what you can expect screen by screen as you submit your application.

Founded in 2013, StreetShares is relatively new to the alternative lending space. The company uses community-based lending to connect small-business owners with investors who share characteristics such as military service or gender. This way, StreetShares aims to drive down risk, which helps keep interest rates between 8% and 40%.

StreetShares offers term loans between $2,000 and $100,000, though you’ll only qualify to borrow up to 20% of your company’s annual revenue. Check out our review for more information.

Below, we’ll break down StreetShares’ application process step by step. It’s also mobile-friendly, so you can complete it on the go from your phone or tablet.

Table of Contents

Prequalification

Provide detailed business information

Chat with sales rep

Write your pitch

Wait for auction

Accept funding

To apply

StreetShares loan application: Summary

Time: 10 minutes

Phone calls to expect: 1 to 2

Documents needed: Six months of bank statements, your most recent business and personal tax returns, a DD Form 2014 (if you’re a veteran). You might also be required to send a copies of your balance sheet and profit and loss statements.

StreetShares at a glance

Type of product	Term loan
Cost of funding	8% to 40% APR
Approval time	1 to 5 days
Loan amount	$2,000 to $100,000
Loan term	3 to 36 months

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1. Prequalification

First, you’ll provide basic information and create an account. You can use your LinkedIn profile to populate some of the fields.

Next, you’ll enter information about the amount of funding you’d like and your requested repayment terms.

You’ll also add some information about your business, including its:

• Name.
• Contact information and website.
• Business entity type.
• Revenue.
• Number of years in operation.
• Number of employees.

You’ll follow up with information about yourself, including your:

• Name.
• Contact information.
• Birthdate.
• Veteran status.
• Household income.
• Percent ownership in your business.
• Personal credit estimate.

You’ll also be asked for the last four digits of your Social Security number. StreetShares will use that information to perform a soft credit inquiry, after which you’ll find out if you prequalify for a loan.

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2. Provide detailed business information

If you prequalify, you’ll start the full application process and provide more details, including:

• Your employer ID number.
• Your full Social Security number.
• Your business’s address.
• Your business’s outstanding debt.

You’ll also add information about your business financials. You can either log directly into your bank account to access your last six months’ worth of business bank statements, or manually upload the documents. Then you’ll upload your most recent business and personal tax returns.

Last, you’ll tell the company how you plan to use the funds you receive through StreetShares. Options include buying inventory or equipment or making facility improvements.

Hitting “submit” sends your documents to StreetShares’ underwriting team. At this time, they’ll perform a hard credit check.

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3. Chat with a sales rep

Between 30 minutes and a few hours after submitting your documents, a customer service representative will call to check in with you about the process and let you know if any documents are missing. If there are substantial questions about your credit history, an underwriter might join the conversation, giving you a chance to clarify.

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4. Write your pitch

As the underwriting team reviews your documents, you’ll have the opportunity to develop your pitch. You’ll either approve a basic profile the program pieces together, using information from your application, or create a more detailed pitch with information about you, your business and your funding goals. You can add pictures and videos or link to your social media accounts. Personalizing the pitch isn’t mandatory, but it can help sell your business to potential investors.

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5. Wait for the auction

After you’ve approved your profile, your auction will begin. Auctions can last a few hours or a few days, depending on your requested time to funding. While it’s going on, potential investors can view your pitch and bid a monetary amount and corresponding interest rate.

At the end of your auction, StreetShares collects the monetary bids with the lowest interest rates that add up to your loan amount, then bundles the rates together. You’ll receive a loan offer with one rate, term limit and amount that you can either accept or decline.

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6. Accept funding

If you decide to accept the loan, an automatic transfer will be initiated and you’ll have the funds in your account by the next business day.

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To apply

If you’re interested in a loan from StreetShares, you can apply on the lender’s secure website:

Apply Now at StreetShares

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Find and compare small-business loans

To compare StreetShares with other lenders, NerdWallet has created a comparison tool of the best small-business loans to meet your needs and goals. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.

Compare business loans

Jackie Zimmermann is a staff writer at NerdWallet, a personal finance website. Email: jzimmermann@nerdwallet.com. Twitter: @jackie_zm.

To get more information about funding options and compare them for your small business, visit NerdWallet’s small-business loans page. For free, personalized answers to questions about financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.