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Struggling with cash flow? Need funds for growth? Get $5,000 to $5M in funding with rates as low as 6.99%. Compare 50+ lenders in 60 seconds.
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What is a Business Loan?
A complete guide to understanding business loans and how they can fuel your company's growth
Business Loan Definition
A business loan is a form of debt financing that provides capital to business owners for various operational needs, expansion projects, equipment purchases, or working capital. Unlike personal loans, business loans are specifically designed for commercial purposes and can range from small microloans to multi-million dollar credit facilities.
Business loans come in many forms—from traditional bank term loans and lines of credit to SBA-backed loans, merchant cash advances, and alternative lending options. Each type serves different business needs and comes with varying interest rates, repayment terms, and qualification requirements.
How Do Business Loans Work?
Business loans follow a structured process designed to match qualified borrowers with appropriate funding:
- Application: Business owners submit their financial information, business details, and funding needs to lenders.
- Underwriting: Lenders evaluate creditworthiness by reviewing credit scores, revenue, time in business, and financial statements.
- Approval & Terms: Approved applicants receive loan offers specifying the amount, interest rate (APR), repayment term, and monthly payment.
- Funding: Once accepted, funds are disbursed to the business bank account, typically within 1-7 business days.
- Repayment: Borrowers repay the loan through scheduled monthly, weekly, or daily payments until the balance is paid in full.
Types of Business Loans Available
Term Loans
Best for: Major purchases, expansion, equipment
Amount: $25,000 - $5,000,000
Rates: 6% - 30% APR
Term: 1-10 years
Traditional loans with fixed amounts and regular repayment schedules. Ideal for significant one-time investments.
Business Lines of Credit
Best for: Cash flow, seasonal expenses, emergencies
Amount: $5,000 - $250,000
Rates: 7% - 25% APR
Term: Revolving
Flexible credit you can draw from as needed. Only pay interest on what you use, similar to a credit card.
SBA Loans
Best for: Startups, real estate, working capital
Amount: Up to $5,000,000
Rates: 5% - 11% APR
Term: 10-25 years
Government-backed loans offering the lowest rates and longest terms, but require extensive documentation.
Equipment Financing
Best for: Machinery, vehicles, technology
Amount: Up to 100% of equipment value
Rates: 6% - 20% APR
Term: 2-7 years
Specialized loans where the equipment serves as collateral. Fast approval and competitive rates.
Business Loan Interest Rates & Fees
Business loan costs vary significantly based on loan type, lender, creditworthiness, and market conditions:
APR: 5% - 13%
Best rates but strictest requirementsAPR: 7% - 30%
Fast approval with flexible requirementsAPR: 15% - 99%+
Quick access but higher costsCommon fees include: Origination fees (1-6% of loan), application fees ($75-$500), underwriting fees, prepayment penalties, and late payment fees.
Which Loan Solves Your Problem?
Choose the right funding solution for your specific business needs
Need Cash Flow?
Get a Business Line of Credit
- Access $5K-$250K instantly
- Only pay for what you use
- Perfect for seasonal businesses
Expanding Business?
Get a Term Loan
- $25K to $5M for growth
- Rates as low as 6.99%
- Fixed monthly payments
Buying Equipment?
Get Equipment Financing
- Finance 100% of equipment cost
- Keep your cash reserves
- Fast 24-hour approval
Want Best Terms?
Get an SBA Loan
- Lowest rates available
- Up to 25-year terms
- As low as 10% down
Get Funded in 4 Simple Steps
From application to funding in as little as 24 hours
Complete Quick Form
Tell us your business structure and how much you need. That's it - no lengthy applications or endless paperwork.
See Your Matches
View personalized loan offers from 50+ lenders. Compare rates, terms, monthly payments, and approval requirements side-by-side.
Choose Your Lender
Pick the best offer for your needs and complete a quick application with your chosen lender. Most approvals happen same-day.
Get Your Money
Funds are deposited directly into your business bank account. Use your capital however you need to grow your business.
Frequently Asked Questions
What credit score do I need for a business loan?
Most lenders require a minimum credit score of 600-650, but some lenders work with scores as low as 500. Better credit scores typically qualify for lower interest rates and better terms.
How long does it take to get approved?
Online lenders can approve applications in as little as 24 hours. Traditional bank loans may take 2-4 weeks. SBA loans typically take 30-90 days for approval.
Will checking rates affect my credit score?
No. Our initial comparison uses soft credit checks that don't impact your credit score. Only when you formally apply with a lender will they perform a hard credit check.
What can I use a business loan for?
Common uses include working capital, equipment purchases, inventory, real estate, expansion, hiring, marketing, and debt consolidation. Some lenders have restrictions on usage.
How much can I borrow?
Loan amounts typically range from $5,000 to $5 million, depending on the loan type, your business revenue, credit score, and time in business.
Do I need collateral?
It depends on the loan type. Some loans are unsecured, while others require collateral like equipment, real estate, or accounts receivable. Secured loans often have better rates.
Can You Qualify? (Probably Yes!)
We work with lenders who approve businesses with various profiles
Don't Meet All Requirements?
Apply anyway! We have lenders who specialize in:
- Startups & new businesses (under 6 months)
- Lower credit scores (as low as 500)
- Smaller revenues (as low as $10K/year)
- Previous bankruptcies or credit issues
Our job is to find you a "YES" - even if banks said no.
Typical Requirements
These are guidelines - every lender is different:
- Credit Score: 600+ (some as low as 500)
- Time in Business: 6+ months (some fund startups)
- Annual Revenue: $50K+ (some accept $10K)
- Documentation: Bank statements, basic info
Won't hurt your credit • Takes 60 seconds
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