Resource

How to Get a Business Loan

A step-by-step guide to securing business financing, from preparation to funding. Most lenders require 600+ credit, 6+ months in business, and $10k+/month revenue. Alternative lenders approve in 24-72 hours; banks and SBA loans take 1-12 weeks.

  • Check qualifications before applying: 600+ credit score, 6-12 months in business, $10k+/month revenue
  • Gather documents upfront: bank statements, business formation docs, ID, tax returns
  • Compare lenders — rates, terms, fees, and funding speed vary significantly
  • Never borrow more than you need; over-borrowing increases repayment risk

Step 1 — 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.

Step 2 — Check Your Qualifications

Minimum requirements: 600+ personal credit score, 6-12 months in business, $10,000+ monthly revenue, no active bankruptcies.

Step 3 — Gather Required Documents

Essential paperwork includes 3-6 months of bank statements, business formation documents, government-issued ID, voided check, 1-2 years of tax returns, and financial statements (P&L and balance sheet).

Step 4 — Research Lenders and Loan Types

Options include term loans, lines of credit, SBA loans, and equipment financing. Each has different rates, terms, and qualification requirements. Match the loan type to your specific use case.

Step 5 — Compare Offers

Compare interest rates, loan terms, fees, funding speed, and qualification requirements across at least 2-3 lenders before deciding.

Step 6 — Submit Application

Be honest and accurate — lenders verify information. Incomplete applications delay approval. Submit all required documents at once.

Step 7 — Wait for Approval and Funding

Timeline varies: Alternative lenders: 24-72 hours. Banks: 1-4 weeks. SBA loans: 4-12 weeks.

Common Mistakes to Avoid

  • Applying too early before meeting minimum requirements
  • Submitting incomplete documentation
  • Not comparing lenders
  • Borrowing more than you need
  • Neglecting to improve credit before applying

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.
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 with low credit.
What documents do I need?
Basic: bank statements, business docs, ID, voided check. Larger loans: tax returns and financial statements.
How much can I borrow?
Amounts vary by loan type: $25k-$500k for lines of credit, up to $5M for SBA loans.

Ready to get funded?

Apply once and get a clear funding offer in 24–72 hours — no hard credit pull to pre-qualify.

Apply Now — It's Free →