Pre-Qualified vs. Pre-Approved

Pre-Qualified vs. Pre-Approved – What is the Difference?

Universal Finance is a direct lender therefore, we decide which customer to lend to. Unlike traditional banks and many of our competitors, we look beyond how a prospective customer “looks on paper” to fully understand who the customer is and what they have to offer. This approach has enabled Universal Finance to solidify relationships with thousands of customers who have secured business loans from us for nearly forty years.
One question that our team often gets from new customers is “What’s the difference between getting pre-qualified and pre-approved for a loan?”. This question typically comes up when a prospective customer is preparing to apply for a loan and are in the process of supplying our team with financial information about their company.


To obtain pre-qualification for a loan from Universal Finance, prospective borrowers verbally provide us with information including their company’s revenue, its assets, and any outstanding debts. Our team will then review this data, and, in as little as 24 hours, we will notify you to confirm that we are prepared to move on to the next step in the process – pre-approval.

Once your business has been pre-qualified, Universal Finance will provide you with estimated terms and conditions which would include additional documents needed. It is important to note that pre-qualification does not include an analysis of your credit report or an in-depth review of your company’s finances or assets – these steps will occur during the pre-approval process.


Once a customer is pre-qualified for a loan, Universal Finance will begin the pre-approval process. In most cases, we offer same-day pre-approvals as our team works as quickly as possible to move the process forward to ensure that our customers get the funding they need fast.

To obtain pre-approval, customers are asked to complete our one-page loan application and submit any additional documents needed. Once Universal Finance has processed your application, we will review your credit score, and work with you to gain an understanding of your business history, as well as your business goals.

At Universal Finance, we base our financing decisions on the “Three C’s – Credit, Collateral, and Character.” Therefore, keep in mind that your credit score is just one piece of the puzzle that determines your eligibility to obtain financing. Understanding the value in your assets and the work that goes into your business is just as important.

Once an application is pre-approved, our team will review the financing options available to you, and we will develop a plan to get you the funds needed to keep your business moving forward.
Click here to apply for pre-approval for a loan from Universal Finance or call us at 781-219-0511 to speak with a representative today!

About Universal Finance Corp.

Universal Finance Corp. established itself as a premier lender to the construction industry in the early 1980’s and, over the last four decades, the company has expanded its reach to serve customers in a wide range of other industries including transportation, restaurants, and medical equipment suppliers. Located just outside of Boston, MA, Universal Finance provides borrowers with the financing they need to secure jobs, purchase equipment, and obtain working capital.