There are several types of small business loans available, including:

• Business Term Loans: Lump sum loans repaid over a fixed period.
• SBA Loans: Government-backed loans with favorable terms.
• Business Lines of Credit: Flexible borrowing where you can draw funds as needed.
• Equipment Financing: Loans specifically for purchasing business equipment.
• Invoice Financing: Advances on outstanding invoices.
• Merchant Cash Advances: Lump sum advances repaid via a percentage of daily sales. Each loan type serves different needs, so it’s important to choose one that aligns with your business goals.

Qualification for a small business loan depends on several factors, including:

Business Plan: A solid business plan showing how the loan will be used can also help. Each lender may have different criteria, so it’s a good idea to check with your lender for specific requirements.

Credit Score: A good credit score improves your chances of approval.

Business History: Lenders often require 1-2 years of operating history.

Revenue: Demonstrating steady and sufficient revenue is crucial.

Collateral: Some loans require collateral, such as equipment or real estate.

The amount you can borrow depends on the type of loan, your business’s financials, and the lender’s policies. Loans can range from a few thousand dollars to several million, depending on your business needs and qualifications. It’s important to only borrow what you need and can reasonably repay.

Interest rates on small business loans can vary widely based on the type of loan, your creditworthiness, and market conditions. Typical interest rates can range from 4% to 15% or more. SBA loans generally have lower interest rates, while merchant cash advances may have higher costs. We compare rates from multiple lenders to ensure you’re getting the best deal.

Online Lenders: Often provide approval within 24-48 hours.

Traditional Banks: May take several weeks for approval.

SBA Loans: Typically require more paperwork and can take a few weeks to a couple of months. The complexity of the loan and the lender’s process play a big role in the timing. Providing all required documentation upfront can help speed up the process.

Working Capital: To cover day-to-day expenses.

Expansion: Opening new locations or expanding operations.

Inventory: Purchasing stock to meet demand.

Equipment: Buying or leasing business equipment.

Debt Refinancing: Paying off existing business debt. Be sure to check with your lender if there are any restrictions on how the loan funds can be used.