How-To Guide

How to Get a Business Loan

A step-by-step guide to securing business financing, from preparation to funding.

To get a business loan, follow these steps: (1) Assess your needs and determine loan amount, (2) Check your credit score and business financials, (3) Gather required documents (bank statements, tax returns, financial statements), (4) Research lenders and loan types, (5) Compare offers and terms, (6) Submit application with complete documentation, (7) Wait for approval (typically 24-72 hours for alternative lenders, 4-12 weeks for banks/SBA). Most lenders require 600+ credit, 6+ months in business, and $10k+/month revenue.

Step-by-Step Process

Assess Your Needs

Determine how much you need and what you'll use it for. Common uses: working capital, equipment, expansion, inventory, or real estate.

Use our business loan calculator to estimate payments and terms.

Check Your Qualifications

Review your credit score, time in business, and revenue. Most lenders require:

• 600+ personal credit score
• 6-12 months in business
• $10,000+ monthly revenue
• No active bankruptcies

Learn more about how to qualify for a business loan and credit score requirements.

Gather Required Documents

Prepare documentation lenders will request:

• 3-6 months business bank statements
• Business formation documents (EIN, articles)
• Driver's license or ID
• Voided business check
• Tax returns (for larger loans)
• Financial statements (P&L, balance sheet)

See our complete documents checklist.

Research Lenders & Loan Types

Compare different loan types and lenders:

• Term loans: Lump sum, fixed payments
• Lines of credit: Revolving, draw as needed
• SBA loans: Low rates, longer terms
• Equipment financing: Asset-backed

Explore all business loan programs to find the right fit.

Compare Offers

Get pre-qualified with multiple lenders to compare:

• Interest rates and APR
• Loan terms and repayment schedule
• Fees (origination, processing, prepayment)
• Funding speed
• Qualification requirements

Submit Application

Complete the application with all required documentation. Be honest and accurate—lenders verify information. Incomplete applications delay approval.

Use our business loan readiness checklist before applying.

Wait for Approval & Funding

Approval timelines vary by lender:

• Alternative lenders: 24-72 hours
• Banks: 1-4 weeks
• SBA loans: 4-12 weeks

Once approved, funding typically occurs 1-3 business days. Learn about how long it takes to get a business loan.

Common Mistakes to Avoid

Applying Too Early: Wait until you meet minimum requirements (6+ months, $10k+/month revenue) to avoid unnecessary credit inquiries.
Incomplete Documentation: Missing documents delay approval. Gather everything before applying.
Not Shopping Around: Compare multiple lenders to get the best rates and terms.
Borrowing Too Much: Only borrow what you need. Use our affordability calculator to determine safe borrowing amounts.
Ignoring Credit Score: Check and improve your credit before applying for better rates. Learn how to build business credit.

Frequently Asked Questions

How long does it take to get a business loan?

Alternative lenders: 24-72 hours. Banks: 1-4 weeks. SBA loans: 4-12 weeks. Learn more about how long it takes to get a business loan.

Can I get a business loan with bad credit?

Yes, but options are limited and rates higher. Asset-based loans and invoice factoring are better options. Learn about business loans with bad credit.

What documents do I need?

Basic: bank statements, business docs, ID, voided check. Larger loans: tax returns, financial statements. See our complete documents checklist.

How much can I borrow?

Amounts vary by loan type: Lines of credit ($25k-$500k), term loans ($50k-$2M+), SBA loans (up to $5M). Amount depends on revenue, credit, and loan purpose.

Ready to Get Started?

Apply now and get a decision in 24-72 hours. No obligation, soft credit pull only.

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