Even profitable business owners with steady clients and tight budgets are still wondering why and how hard is it to get a business loan this year?

With the shifting economy, banks are becoming more cautious than ever.

So, if you think you can walk into a bank and get a loan with just strong revenue, think again. 

Traditional lenders are getting more stringent, requiring more paperwork and longer wait times, while private lenders are faster and more flexible but often come with higher costs.

But if you know what lenders are looking for, you’re already one step closer to securing the right kind of funding.

The Lending Environment in 2025

If it feels harder to get approved right now, you’re not imagining things.

The lending environment in 2025 has shifted. 

Banks are more cautious than they were even a year ago, and risk tolerance is getting tighter. 

It mostly comes down to economic uncertainty, rising rates, and lenders being pickier about who they trust.

The Traditional Lenders’ Mindset

Big banks and credit unions aren’t too eager to take risks on businesses without strong credit or steady income.

They’re asking more questions, requesting more documentation, and taking longer to process applications. 

That doesn’t mean you’re out of luck.

It just means you’ll need to check more boxes and come prepared.

The Private Lenders’ Mindset

At the same time, private credit and online lenders are expanding. 

They usually approve loans faster and aren’t as strict with their requirements

However, the higher interest, shorter payback terms, and sometimes daily or weekly payments can squeeze your cash flow. 

What Loan Options Do You Have in 2025?

Getting a loan isn’t as much of a problem as figuring out where you’re most likely to get approved and what the terms will be.

Thinking about applying? 

Here are the most common loan types and what to expect from each.

Traditional Term Loans

You borrow a lump sum, pay it back over a fixed term, and lock in a reasonable interest rate. 

These typically come from banks or credit unions and work well for established businesses with good credit and steady revenue.

  • Best for: Businesses with a solid track record and detailed financials
  • Things to know: Expect to provide tax returns, P&L statements, balance sheets, and possibly collateral

SBA Loans

Backed by the Small Business Administration, SBA loans are popular because of their relatively low rates and longer repayment terms.

But they’re also notoriously slow and paperwork-heavy. 

In 2025, SBA 7(a) and Microloan programs remain strong options for qualified businesses.

But application review times can stretch out unless you go through an approved SBA lender.

  • Best for: Businesses that qualify and aren’t in a rush
  • Things to know: Strong credit, personal guarantees, and detailed business plans are usually required

Business Lines of Credit

This is like a credit card for your business. 

You’re approved for a set limit, and you draw funds as needed.

Interest only applies to the amount you borrow. 

This is a smart option if your income fluctuates or you want a safety net.

  • Best for: Seasonal businesses or anyone who wants flexible access to funds
  • Things to know: Lenders still evaluate your revenue consistency and credit score

Online Loans / Fintech Lenders

Online lenders can turn around loan decisions in days and sometimes hours. 

They often look beyond credit scores and assess your daily cash flow and payment behavior. 

However, it comes with higher interest rates and less room on repayment terms.

  • Best for: Fast access when time is critical
  • Things to know: Some use daily repayment schedules or “factor rates” instead of traditional APR, which can be confusing and expensive

Merchant Cash Advances (MCAs)

These aren’t technically loans. 

They’re advances based on your future sales.

You get a lump sum up front, then pay it back through a fixed percentage of daily credit card sales.

It’s fast but often expensive.  

  • Best for: High-volume retail businesses with limited credit
  • Things to know: Effective APRs can be shockingly high

What Are Lenders Looking for in 2025?

Whether it’s a big bank or a fintech startup, every lender in 2025 is focused on one thing: how risky is your business?

Here’s what they’re looking at:

Cash Flow

Lenders want to see consistent income that’s enough to comfortably cover loan payments. 

Expect to show recent bank statements, monthly revenue reports, and sometimes even cash flow projections.

Time in Business

The longer you’ve been around, the more confident a lender feels. 

Two years is the unofficial threshold for traditional loans, though online lenders might consider newer businesses if the revenue looks strong.

Credit Score 

Lenders will see both your personal and business credit scores —especially if your business credit is thin or nonexistent. 

Most lenders have minimum credit score cutoffs. 

For banks, it’s usually 680+. 

For online lenders, 600 might be enough.

If your credit score is below 600, you may still qualify for an MCA or short-term loan, but the rates will reflect that risk.

Industry Risk

Lenders often have different standards depending on your industry. 

Restaurants, construction, cannabis, and seasonal businesses are sometimes flagged as higher risk, which can make approvals harder or limit how much funding you get.

Documentation and Transparency

More lenders are using automation and algorithms to screen applications, but that doesn’t mean human oversight is gone.

Submitting complete, accurate, and on-time documents goes a long way in speeding up approvals.

ROK Financial Makes it Easy 

So, is it hard to get a business loan in 2025? 

It’s not difficult, but different.  

But if you’re running a strong business with clean finances and a solid plan, you’re already ahead of the curve.

And ROK Financial makes it easier for you.  

We specialize in helping business owners find the right capital, from the right lenders, with terms that align with your growth, not just the lender’s.  

Whether you’re after a term loan, line of credit, SBA loan, or something like equipment financing, we’ve got the expertise to guide you. 

With thousands of successful matches, we know what lenders are actually funding and what it takes to get approved.