Getting a small business loan comes down to five steps: prepare your finances, gather your documents, choose the right product, compare real offers, then apply. Approval depends on your credit, time in business, cash flow, and sometimes collateral. The and nonbank financing providers can each weigh these differently, so your best fit depends on your situation.
How do you get a small business loan?
To get a small business loan, prepare your financials, collect your documents, pick a product that matches your need, compare offers from banks and online financing providers, then submit a complete application. Traditional banks often place more weight on operating history and credit, while many nonbank providers also evaluate recent revenue and cash-flow signals.
A bank might decline a two-year-old business with uneven credit, while an online financing provider funds it based on steady deposits. Knowing which door to knock on saves weeks.
What lenders and financing providers evaluate before approving you
Most underwriting reviews four things: your credit, how long you’ve operated, your cash flow, and whether you’re offering collateral. Banks typically review credit history and financial documentation such as tax returns. Many nonbank financing providers use bank-statement underwriting, reading your deposits to judge whether your revenue can comfortably support the financing.
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What lenders check
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Where this is reviewed
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Documents to provide
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Notes
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Credit score
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Personal and business credit reports
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Government ID, business registration
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Personal FICO often matters more for smaller financing
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Time in business
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Registration date, bank history
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Business license, formation docs
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Banks may want one to two years; some nonbank providers may accept less
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Cash flow and revenue
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Bank statements, deposit trends
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3 to 6 months of bank statements
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Steady deposits can offset a thinner credit file
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Collateral
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Asset documentation
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Equipment titles, property records
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Required for secured loans, not for every product
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For a deeper look at eligibility, see .
How your credit score factors into approval
Personal credit scores run from 300 to 850, and many lenders review your personal FICO even for a business loan, especially at smaller amounts. Business credit, tracked separately through bureaus like Dun & Bradstreet, builds over time as you take on and pay trade lines. Banks generally tend to require stronger credit profiles than many online providers.
Credibly requires a 550+ FICO score for financing with Credibly,⁴ along with 6+ months in business and $20,000 in average monthly deposits. Owners with thinner credit can still qualify when their cash flow tells a stronger story, because bank-statement underwriting weighs real revenue alongside the score.
How time in business affects your options
Time in business shapes who will work with you. Traditional banks often look for at least one to two years of operating history. Some nonbank financing providers may accept shorter histories when current revenue and cash-flow trends support the application.
How cash flow and revenue are reviewed
Cash flow is where many approvals are won or lost. Underwriters look at how money moves through your account, not just whether you turned a profit on paper. Consistent deposits over several months carry more weight than one strong month, since steady revenue signals you can handle the financing without strain.
When collateral matters
Collateral matters most for secured products like equipment financing, SBA 504 loans, and some bank term loans, where a specific asset backs the financing. Unsecured products don’t require you to pledge property, though they may rely more heavily on credit and cash flow. If you don’t have assets to pledge, read up on .
What documents do you need to apply for a business loan?
Many applications ask for some combination of core paperwork, such as recent bank statements, your business license or registration, business and personal tax returns, a voided check, a government ID, and proof of ownership. Having these ready before you apply shortens the process and reduces back-and-forth with the underwriter.
Gather these first:
- Three to six months of business bank statements
- Business license or registration documents
- Personal and business tax returns
- A voided check from your business account
- A government-issued photo ID
- Proof of ownership or operating agreement
For a fuller list, use the .
The step-by-step application process
The application itself moves in five steps: review your finances, organize documents, choose a product, compare offers, then submit. With a nonbank provider, decisions and funding can move quickly once your paperwork is complete. Banks and SBA-backed loans can take longer because they typically involve deeper underwriting.
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Step
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Action
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Documents needed
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Typical time to complete
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Helpful tip
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1
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Review your credit and cash flow
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Bank statements, credit report
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A few hours
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Spot weak spots before a lender does
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2
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Gather your documents
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Full checklist above
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A day or two
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Keep digital copies ready to upload
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3
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Choose a product
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None
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An hour
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Match the product to your use case
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4
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Compare offers
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None
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A day
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Look at total cost, not just amount
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5
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Apply and verify
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Completed application, voided check
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Minutes to submit
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Respond fast to underwriter questions
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How much capital should you actually borrow?
Borrow against a specific cost, add a buffer, and confirm the payment fits your monthly revenue before committing. Right-sizing protects your cash flow, and there are times when the smart move is to wait rather than take on more than your numbers support.
You can before you commit to anything.
Small business loan calculator
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Disclaimer
This calculator is for general information purposes only and assumes a preset factor rate. Inaccurate information will produce inaccurate results. Using this calculator does not guarantee you or your business a small business loan.
Matching financing to your use case
Different needs call for different products and different payback horizons. A short-term inventory buy doesn’t need a five-year obligation, and a major expansion shouldn’t be squeezed into a few months.
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Purpose
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Typical cost components
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Financing types to consider
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Satisfaction timeline
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Inventory
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Stock, shipping, storage
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Working capital loan, line of credit
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Short to medium
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Expansion
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Buildout, new location, hiring
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Term loan, SBA loan
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Medium to long
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Payroll
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Wages, taxes, benefits
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Working capital loan, MCA
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Short
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Seasonal needs
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Pre-season stock, staffing
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MCA, line of credit
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Short
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Equipment
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Machinery, vehicles, tech
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Equipment financing
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Medium to long
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What financing options can you choose from?
Your main options are working capital loans, merchant cash advances, business lines of credit, equipment financing, and SBA loans. Credibly offers working capital loans and merchant cash advances directly, and connects business owners to lines of credit, equipment financing, and SBA loans through external funding partners. You can side by side.
The backs two well-known programs through approved lenders: the SBA 7(a) loan, used for working capital, expansion, and business purchases, and the SBA 504 loan, used for real estate and major equipment. The SBA lists the maximum 7(a) loan amount as $5 million. Neutral rate-context publishers like , , and are useful for comparing typical ranges as you weigh options.
How a Credibly working capital loan works
A funds a lump sum you pay back on a fixed schedule with a daily or weekly payment. Amounts run from $25,100 to $600K with terms of 6 to 24 months. It’s priced with a factor rate set upfront, so the cost is fixed.²
This product fits owners who want a defined amount, a clear end date, and a predictable payment they can plan around.
How a merchant cash advance works
A isn’t a loan. It’s a purchase of your future receivables. Credibly’s MCA remittance is a fixed daily or weekly dollar amount debited via ACH, which represents a specified percentage of a good-faith estimate of your monthly revenue. This amount is set at approval based on your real reported revenue. Amounts run from $5K to $600K with terms of 3 to 24 months.
Because the amount is sized against actual deposits, an MCA suits businesses with steady revenue that want funding matched to how money already flows through the account. If revenue runs lower than projected, reconciliation can adjust the total amount you paid for the previous month retroactively, and modification is available proactively on both the MCA and the working capital loan.³
Lines of credit, SBA loans, and equipment financing
Beyond its own financing, Credibly connects owners to financing for needs Credibly’s direct financing options may not cover.¹ A business line of credit gives you revolving access to draw and repay as needed. Equipment financing typically uses the asset itself as collateral, which may help support the approval process. SBA 7(a) and 504 loans through partner lenders offer longer terms for larger projects. Partner product thresholds are set by the funding partner and apply to those products specifically.
Many online financing providers, including companies such as OnDeck, Bluevine, Fundbox, Kapitus, Biz2Credit, National Funding, Rapid Finance, Forward Financing, and Fora Financial, offer their own versions of these products. Invoice factoring, where a business sells unpaid invoices to a third party for early cash, is another option in the broader market worth knowing about as you compare.
How to get a loan to start a business
Getting a loan to start a business can be harder than financing an established one, because many providers want to see operating history and revenue before they fund you. True startups with no revenue usually turn to SBA small-loan programs designed for early-stage businesses, personal savings, business credit cards, grants, or loans backed by personal collateral or a strong personal credit profile.
Credibly’s own financing requires 6+ months in business, so a brand-new business without that history won’t qualify for Credibly’s own financing yet. If you’re still in the planning or earliest operating stage, the walks through options built for that situation. Once you’ve logged a few months of steady deposits, partner products may open up, and a true startup is better served by early-stage programs than by squeezing into a product that expects an operating track record.
How to get a loan to buy a business
To get a loan to buy a business, you’ll typically need a business valuation, the seller’s financials, and a clear picture of how the acquired business generates cash. The SBA 7(a) loan is a common route for acquisitions through approved partner lenders, since it allows longer terms for business purchases.¹
Lenders reviewing an acquisition look at both your background and the target company’s performance. Common requests include several years of the seller’s tax returns and profit-and-loss statements, a purchase agreement, and a valuation that supports the price. Strong cash flow in the business you’re buying can offset a thinner personal history, because the acquired revenue helps service the financing. Line up the seller documentation early, since gaps in their records are the most common reason acquisition financing stalls.
How hard is it to get a business loan right now?
Approval depends heavily on where you apply. According to the , a report on employer firms, full approval rates differ by lender type, with small banks and finance companies tending to approve at higher rates than large banks and online lenders. Owners with steady revenue and complete documentation tend to fare better regardless of channel.
For a fuller breakdown, read .
How fast can you get funded?
Speed depends on the product and the lender. SBA loans and bank term loans can take weeks, depending on lender review, SBA processing where applicable, and documentation requirements. With Credibly’s direct products, you can be approved in as fast as 2 hours and funded in as fast as 4 hours once your application and documents are complete.
How Credibly underwrites your application and matches the product
Credibly underwrites from recent bank statements, so steady deposits carry weight alongside your credit score. The team reviews how cash moves through your account, which is why owners with steady deposits but a thinner credit file can still qualify when their revenue supports it. Because Credibly reads your deposits directly, that read sits at the center of every direct decision.
Different products solve different problems. A working capital loan funds a lump sum with a fixed payment and a set end date, which fits planned, defined expenses. A merchant cash advance funds against future receivables sized from your real revenue, and it fits owners who want the obligation matched to how money already flows in. Both are priced with a factor rate set upfront rather than interest that accrues.
If Credibly’s own financing isn’t the right fit, Credibly routes business owners to lines of credit, equipment financing, SBA loans, and longer-term loans through external funding partners.¹ Returning customers may be eligible for better terms that reflect their track record once they’ve completed a first round.
Frequently asked questions
What credit score do I need for a small business loan?
It varies by lender. Traditional banks usually want higher personal and business scores, while online financing providers can work with lower ones by weighing your cash flow. Credibly’s own financing starts at a 550 FICO, with steady revenue helping offset a thinner credit profile. Check the score requirement with each provider before you apply.
Can I get a business loan with bad credit?
Yes, with the right provider. Lenders that use bank-statement underwriting look at your deposits and revenue trends, so consistent cash flow can carry an application that a credit-first bank would decline. You’ll generally see higher costs with weaker credit, so compare total cost across offers and borrow only what your revenue comfortably supports.
How long does it take to get approved?
It depends on the product and how complete your paperwork is. SBA and bank loans often take weeks. Nonbank financing providers move much faster, and Credibly can return a decision quickly once your documents are in. Having bank statements and ID ready up front is the surest way to speed things along.
Do I need collateral for a small business loan?
Not always. Secured products like equipment financing and SBA 504 loans require an asset to back them. Unsecured options don’t ask you to pledge property and instead lean on credit and cash flow. If you’d rather not put up collateral, focus on unsecured products and providers that underwrite from revenue.
Which fits better for uneven monthly revenue, a working capital loan or a merchant cash advance?
If your income swings month to month, the choice comes down to how you want the obligation to behave. A working capital loan gives you a fixed payment and a firm end date, which works when you want predictability. A merchant cash advance is sized from your actual revenue and suits owners who want the obligation tied to real deposits. If a slow stretch hits, and the amount you remit exceeds the specified percentage of your revenue that the MCA calls for, the reconciliation process can return any overage for the previous month.
Can I get a loan to start a business with no revenue?
It’s tough. Most financing providers, including Credibly, want some operating history and revenue first. True startups usually rely on SBA small-loan programs designed for early-stage businesses, personal credit, savings, or grants until they build a track record. Launch lean, gather a few months of steady deposits, then revisit your options once a provider can see real numbers.
See which financing fits your business
Ready to move forward? Check your eligibility and see your options in minutes, then compare the products that match what you actually need.
¹ Some products are made available through Credibly’s network of external funding partners. Partner product thresholds are set by the funding partner and apply to those products specifically.
² Factor rates as low as 1.11.
³ Financing terms are based on a good-faith estimate and assume consistent monthly revenue. Actual time to satisfy the MCA may vary.
⁴ Credibly merchant cash advances and working capital loans to merchants in California are provided by Retail Capital LLC. All other Credibly products in all other jurisdictions are provided by Credibly or Arizona LLC.
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