# How to get a business loan

Source: https://businessloanbroker.ai/guides/how-to-get-a-business-loan/
Site: BusinessLoanBroker.ai (powered by Levr)

> How to get a business loan, step by step: what lenders check, how much you can borrow, which type fits, documents, timing and what to do if declined.

To get a business loan you show a lender three things: that your business makes enough money to repay, that you have paid your debts before, and that the loan has a clear purpose. Most lenders decide on time in business, revenue, cash flow and credit. Below: what each one checks, how much you can borrow, which product fits, and what to do if the answer is no.

## Key facts
- **Minimums most lenders use:** 1 to 2 years in business, $10,000 a month in deposits, 600 credit
- **Typical amounts:** $10,000 to $5 million, most under $500,000
- **Typical time to fund:** 1 to 3 days for cash advances, 30 to 90 days for SBA
- **Cost to apply here:** Free; lenders pay us when a loan funds

## How do business loans work?

A business loan gives your company money now in exchange for repaying it with interest or a fee over a set period. Depending on the product you repay monthly over years (term loans, SBA loans), draw and repay as needed (a [line of credit](https://businessloanbroker.ai/business-loans/line-of-credit/)), or pay daily or weekly from sales (cash advances and revenue based financing).

Most loans under $500,000 also carry a [personal guarantee](https://businessloanbroker.ai/guides/personal-guarantees/), so you are personally responsible if the business cannot pay. Lenders fall into three groups: banks (cheapest, slowest, strictest), SBA lenders (cheap, slow, flexible on collateral), and online lenders (fast, looser, more expensive).

## What do lenders check?

Lenders check four things first: time in business, revenue, cash flow and credit. Banks typically want two years in business, $250,000 or more in annual revenue, a personal credit score above 680, and cash flow that covers the new payment with room to spare (a [DSCR](https://businessloanbroker.ai/guides/dscr-explained/) of 1.25 or more). Online lenders go lower: six months to a year in business, $10,000 a month in revenue, and a score around 600.

After those, they look at your industry, existing debt, overdrafts on your bank statements, tax liens and judgments. The full list is in [business loan requirements](https://businessloanbroker.ai/guides/business-loan-requirements/).

## How much can I borrow?

Most lenders lend a multiple of your revenue or cash flow. Online term loans and lines typically cap at 10% to 20% of annual revenue. Cash advances typically offer 50% to 150% of one month's deposits. Banks and SBA lenders size the loan on cash flow: the payment must fit under your income with a cushion, so $150,000 of annual cash flow might support $400,000 to $600,000 of ten year SBA debt.

Collateral extends the limit for real estate and equipment loans, where lenders typically advance 70% to 90% of the asset's value. Run your numbers in [how much can I borrow](https://businessloanbroker.ai/tools/how-much-can-i-borrow/) first.

## Which type should I apply for?

Match the product to the purpose and the timeline. One planned purchase with a known cost fits a [term loan](https://businessloanbroker.ai/business-loans/term-loans/) or an [SBA 7(a) loan](https://businessloanbroker.ai/business-loans/sba-7a-loans/). Ongoing gaps between paying suppliers and getting paid fit a line of credit or [invoice factoring](https://businessloanbroker.ai/business-loans/invoice-factoring/). Buying a machine or vehicle fits [equipment financing](https://businessloanbroker.ai/business-loans/equipment-financing/), where the asset is the collateral.

If you need money this week and have steady deposits, a cash advance will fund fastest, but it is the most expensive option and should be the last one you consider. The table below compares the main choices.

## What documents do I need?

For anything under $150,000 from an online lender you usually need three to six months of business bank statements and a government ID. For larger loans, banks and SBA lenders add two years of business and personal tax returns, a year to date profit and loss statement and balance sheet, a debt schedule, aging reports, and your formation documents. Equipment and real estate loans add the quote or purchase agreement.

Gather these before you apply; a complete file is the biggest thing you control for speed. The [document checklist](https://businessloanbroker.ai/guides/document-checklist/) covers every item, and [what you need to apply](https://businessloanbroker.ai/apply/what-you-need/) shows what this site asks for.

## How long does it take?

Typical funding times run from one day to three months depending on the product. Cash advances and revenue based financing typically fund in one to three days. Online term loans and lines take one to seven days. Bank term loans take two to eight weeks. SBA 7(a) loans take 30 to 90 days, and SBA 504 and commercial real estate loans take 45 to 120 days because of appraisals and legal work.

The clock usually stops for one reason: missing documents. Answer requests the same day and most timelines land at the short end. See [how long a business loan takes](https://businessloanbroker.ai/guides/how-long-it-takes/).

## What if I am declined?

A decline from one lender is not a decline from all of them. Banks say no most often for time in business under two years, credit under 680 and thin cash flow. Those same files are routinely approved by SBA lenders, online lenders or asset based lenders at a higher price.

Ask the lender for the reason, fix what can be fixed (pay down a card, clear a tax lien, stop overdrafts for three months), and apply to lenders whose criteria match your file. [Why loans get denied](https://businessloanbroker.ai/guides/why-loans-get-denied/) lists the real reasons and the fix for each, and [the bank said no](https://businessloanbroker.ai/situations/bank-said-no/) covers what to do next.

## How do I apply once and reach every matching lender?

You can fill one application on this site and it is matched to lenders in every category, so you do not repeat the form ten times. It is free for your business. Lenders pay us when a loan funds, and we are paid the same whichever lender you pick.

If you would rather not do the paperwork, ask Claude, ChatGPT, Gemini or Grok to apply for you through our [MCP server](https://businessloanbroker.ai/agents/mcp/): your assistant reads your documents, fills the application, checks what is missing and submits with your approval. See [applying with an AI assistant](https://businessloanbroker.ai/agents/).

| Loan type | Typical amounts | Typical cost | Time to fund | Minimum bar |
|---|---|---|---|---|
| Bank term loan | $50,000 to $5M | 7% to 12% APR | 2 to 8 weeks | 2 years, 680 credit |
| SBA 7(a) | Up to $5M | Prime plus a capped spread | 30 to 90 days | 2 years, 650 credit |
| Online term loan or line | $10,000 to $500,000 | 10% to 60% APR | 1 to 7 days | 1 year, 600 credit |
| Equipment financing | $10,000 to $5M | 6% to 25% APR | 2 to 10 days | The equipment itself |
| Merchant cash advance | $5,000 to $500,000 | 1.1 to 1.5 factor rate | 1 to 3 days | 3 to 6 months of deposits |

## Questions and answers
**Can I get a business loan with no revenue?**

Rarely from a business lender, because repayment comes from revenue. Startups typically use SBA microloans, business credit cards, equipment financing with a down payment, or personal assets. Most lenders will decline until there are deposits to show.

**Do I need collateral?**

Not always. Loans under $100,000 are often unsecured beyond a personal guarantee and a UCC lien on business assets. SBA lenders must take available collateral but do not decline for lack of it. Equipment and real estate loans use the asset itself.

**Will applying hurt my credit score?**

Most lenders prequalify with a soft pull, which does not affect your score, and run a hard pull only when you move forward with an offer. Many separate applications create many hard pulls, so apply once rather than everywhere.

**How much does a business loan cost in total?**

Most term loans and lines cost 7% to 30% APR plus an origination fee of 1% to 5%. SBA loans cost prime plus a capped spread plus a guarantee fee. A 1.3 factor rate advance over six months is roughly 110% APR.

## Related
- [Every type of business loan, explained](https://businessloanbroker.ai/business-loans/)
- [Business loan requirements](https://businessloanbroker.ai/guides/business-loan-requirements/)
- [Business loan document checklist](https://businessloanbroker.ai/guides/document-checklist/)
- [How much can I borrow?](https://businessloanbroker.ai/tools/how-much-can-i-borrow/)
- [What to do when the bank says no](https://businessloanbroker.ai/situations/bank-said-no/)
- [Apply for a business loan](https://businessloanbroker.ai/apply/)

## Apply
Apply for the business: https://apply.businessloanbroker.ai/signup?utm_source=direct&utm_medium=organic&utm_content=md-how-to-get-a-business-loan
MCP server for AI agents: https://mcp.businessloanbroker.ai/mcp (docs: https://businessloanbroker.ai/agents/mcp/)