Small Business Loan Frequently Asked Questions (FAQs)

If you need funding quickly, follow these steps to streamline the loan process and get approved fast:

Step 1: Determine Your Loan Needs

• Decide how much funding you need.
• Identify how the loan will be used (e.g., payroll, equipment, expansion).
• Choose between secured loans (require collateral) or unsecured loans (no collateral required).

Step 2: Gather Your Business Financial Information

Most lenders require the following:

• Business bank statements (last 3-6 months).
• Business tax returns (last 1-2 years for larger loans).
• Proof of revenue and profit (financial statements or profit & loss reports).
• Credit score (higher scores increase approval chances and lower interest rates).

Step 3: Submit a Loan Application

• Choose a lender offering fast business loans with 1-3 day approval timelines.
• Complete the application form with accurate business and financial details.
• Upload necessary documents to avoid delays.

Step 4: Get Approved and Receive Funds

• Most lenders process applications within 24 hours and provide decisions within 1-3 days.
• Upon approval, funds are typically deposited into your business account the same or next business day.
• Start using the funds immediately for business growth, payroll, inventory, or emergency expenses.

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).

• Some lenders require personal guarantees, meaning you are personally responsible for the loan if your business cannot repay it. However, many unsecured business loans do not require collateral or personal guarantees.

• Business Loan: One-time lump sum with fixed monthly payments.
• Business Line of Credit: Revolving credit that can be drawn upon as needed.

• Consider these factors when selecting a loan:
  • Loan Amount Needed – Ensure the loan covers your business needs.
  • Repayment Terms – Longer terms mean lower payments but higher total interest.
  • Interest Rates & Fees – Compare rates to find the best deal.
  • Approval Speed – If you need funding quickly, choose a lender offering 1-3 day approvals.

With American Direct Financing, businesses benefit from:

✅ Fast approvals in 1-3 days
✅ Loan amounts up to $5M
✅ Secured and unsecured loan options
✅ No collateral required for most loans
✅ Tailored financing solutions for business owners