Entrepreneurs and small business owners drive the US economy in good times and in bad. There are 30.7 million small businesses in the US, and 98.2% have fewer than 200 employees.
Small businesses share one crucial quality – they need occasional short-term financing or larger, longer-term small business loans for those with ambitious business plans. The challenge is, banks turn down 80% or more small business loan applications.
Wondering how to go about getting a small business loan? The good news is there are many new small business loan options and online sources available. We’ve got a quick guide to qualifying for a small business loan, the types of loans available, and tips for quickly getting approval for the best loan for your small business.
Benefits of Small Business Funding
So, what type of funding do you need? Wondering “where can I go to get a small business loan for a new business?” Small business loans can help you reach many of your business goals. They can help you keep control of your profits and business, avoid problems with loans from family or friends, and protect you from putting your personal assets at risk.
Your need for capital will vary from smaller, short-term financing for purchasing equipment, buying new or additional inventory, and leasehold improvements to more extensive, longer-term loans for expansion projects and growth.
At other times you may only need a simple line of credit to purchase products and services, meet payroll, or finance accounts receivable. CB Insights reported 29% of businesses failed because they ran out of cash, despite the new options for small business loans.
What Do I Need to Qualify for a Small Business Loan?
Let’s look at what can improve your chance of qualifying for a small business loan: a strong personal credit score, steady business revenue and positive cash flow, at least three years in business; business collateral; and a lower risk industry profile.
If you have a low personal credit score or are a new business startup, don’t despair. Depending on your business and your small business loan source, you have other loan options for Small Business Loans and Equipment Financing.
What Types of Loans Do I Qualify for?
Here are several types of loans you may qualify for:
- Small Business Administration (SBA) loans – up to $5 million, including PPP loans available in as few as 45 days
- Term loans – 6-month to 10-year terms for up to $5 million in; approved in 1-3 days.
- Lines of credit/merchant cash advances – short-term credit to manage cash flow, meet payroll or buy new inventory; 1-3 days approval
- Equipment/accounts receivable/asset-based financing – $10,000-$5 million; 1-5 days approval.
You may qualify for the best loan rates with as little as three months in business and $15,000-plus in monthly sales. Many of these loans have no minimum FICO score, and bad credit may not be a barrier to approval.
Easy and Efficient Way to Apply
We’ve got a wealth of small business loan possibilities whether you need $10,000 to finance new equipment or $5 million to expand and grow your business. If you’re wondering how to get a small business loan with bad credit and no collateral, or where can I get a small business loan with bad credit, take a look at our loan resources for more help.
Need help with how to go about getting a small business loan? Ask one of our Business Financing Advisors about the best loan options for your business. Fill in our 15-second online application form to Apply Now for better terms, lower interest rates, or new funding.
About the Author, Madison Taylor
Madison Taylor is the Brand Ambassador at ROK Financial. She is responsible for raising brand awareness and business relationships with business owners across the country. Madison loves that she plays a small role in getting Business Back To Business Through Simple Business Financing and looks forward to hearing what you think about the blogs she creates! Madison has been working in the financial space for six years, and loves it! When she is not at work, you will find her at home learning a new recipe to test out on her family or going on new adventures with her friends.