Small Business Loan Frequently Asked Questions (FAQs)

Securing the right Small Business Loan is essential for growth, cash flow management, and long-term success. Whether you’re looking to expand, purchase equipment, or cover operational expenses, understanding the loan process helps you make informed decisions.

This detailed FAQ covers the most common questions about small business loans, how to qualify, and how to get fast approval within 1-3 days.

What are the requirements for a small business loan?

To qualify for a small business loan, you typically need:

• A registered business entity (LLC, S-Corp, C-Corp, Sole Proprietor).
• At least 6 months to 1 year in business (varies by lender).
• Minimum monthly revenue of $10,000+ (varies by loan type).
• A business checking account for transactions.
• Credit score of 550+ (higher scores get better terms).

The most common types of Small Business Loans include:

• Business Term Loans: Lump sum funding with fixed repayment terms, ideal for long-term investments such as equipment, inventory, or expansion projects.
• Business Line of Credit: Revolving credit access for flexible funding, allowing businesses to borrow and repay as needed for ongoing financial stability.
• SBA Loans: Government-backed loans with longer terms and lower rates, designed for small businesses seeking affordable, long-term financing options with better repayment flexibility.
• Equipment Loans: Financing for machinery, tools, or office technology, helping businesses acquire essential equipment without large upfront costs that strain cash flow.
• Merchant Cash Advance (MCA): Quick cash advances based on future credit card sales, offering fast access to working capital for businesses with strong daily revenue streams.
• Invoice Financing: Get advances on unpaid invoices to improve cash flow, allowing businesses to cover expenses while waiting for customers to pay outstanding invoices.