MoneyAtlas
Rating
AmONE
Easy application, no SSN required
MoneyAtlas
Rating
AmONE
Easy application, no SSN required
MoneyAtlas
Rating
Fora Financial
Get a decision in 4 hours
MoneyAtlas
Rating
Fora Financial
Get a decision in 4 hours
How Business Loans Work
Business loans come in many flavors—term loans, SBA-guaranteed loans, lines of credit, equipment financing, and merchant cash advances (MCAs). Approval hinges on both your company’s financials (revenue, cash-flow, time in business) and your personal credit. Most products require either specific collateral (e.g., equipment, inventory) or a personal guarantee. Payments are usually fixed-installment (weekly or monthly) for term loans, while credit lines allow flexible draws and interest-only payments on what you use.
Repayment Timeline
- Short-term loans / MCAs: 3–18 months, daily or weekly debits.
- Standard term loans: 1–5 years, monthly payments.
- SBA 7(a) & 504: up to 10 years for working capital and 25 years for real estate.
- Lines of credit: revolving; renew annually if covenants are met.
Typical Uses
- Working capital to smooth cash-flow gaps or seasonal swings.
- Inventory or equipment purchases when supplier terms are limited.
- Expansion & hiring—open a second location, add staff, launch marketing.
- Refinance or consolidate higher-cost debt to cut interest expense.
- Commercial real estate acquisition or renovation (SBA 504/CRE loans).
Fine-Print Fees & Cost Traps
Smart Shopping Tips
- Gauge true APR. Convert factor-rate or daily debit offers into an annualized percentage to compare apples to apples.
- Match loan type to need. Use a revolving line for recurring short-term gaps; pick a term loan for one-off, long-payback projects.
- Prepare your docs. Two years of financial statements, recent bank statements, business plan, and tax returns speed approvals.
- Mind minimums. Many lenders want ≥ $100k annual revenue and 6–24 months in business; SBA lenders often need 680+ FICO.
- Shop multiple channels. Check a local credit union or CDFI, an online marketplace, and at least one SBA Preferred Lender.
- Negotiate covenants. If the loan demands minimum liquidity or debt-service coverage ratios, confirm you can stay compliant.
FAQs
Disclosure
Loan offers provided to customers who originated via a paid Google advertisement feature rate quotes on MoneyAtlas of no greater than 35.99% APR with terms from 61 days to 180 months. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history and will be agreed upon between you and the lender. An example of the total amount paid on a loan of $10,000 for a term of 36 months at a rate of 10% would be equivalent to $11,616.12 over the 36-month life of the loan.