Guide · Business Loans
How to Get a Business Loan
Every month, more than 300,000 people search for ways to fund a small business. Most are not looking for a finance textbook — they are asking four simple questions: How do I get it? Will I qualify? How does it work? And where does the money actually come from? Here is an honest guide built around what owners actually search for.
How do I get a business loan?
The process is simpler than most banks make it feel. Start by gathering three months of business bank statements, a rough idea of how much you need and what it is for, and basic business information (entity type, time in business, industry).
Next, choose how to apply. You can go lender by lender — repeating forms, waiting weeks, and hoping someone says yes — or you can apply once through a financing broker like BizKred. A broker reviews your profile and routes it to third-party lenders or funding partners whose programs may fit your revenue, credit, and timeline.
If lenders return offers, you compare terms, repayment structure, and speed. There is no obligation to accept anything. The entire pre-qualification process through BizKred is free and uses a soft credit check, so it will not impact your personal credit score.
What if you have no money down or limited revenue? Startup business loans with no money are one of the most searched phrases for a reason. Traditional banks usually want 2+ years of revenue, but revenue-based financing and equipment lenders often focus on monthly deposits and collateral rather than a long track record.
Will I qualify?
Lenders look at the full picture: personal credit, business revenue, time in business, industry risk, and bank statement health (negative days, NSF fees, average daily balance). No single number disqualifies you, but some products are more forgiving than others.
Revenue-based financing
Weights monthly deposits and cash flow over credit score. Good for owners with solid revenue but imperfect credit.
Merchant cash advance (MCA)
Repaid from a percentage of daily card sales. Fast and accessible, but factor rates can be high.
Equipment financing
The equipment itself serves as collateral, which lowers credit requirements. Ideal for trucks, machinery, and medical devices.
Business lines of credit
Revolving access to capital. Often requires moderate credit and 1+ years in business.
Term loans & SBA
Lowest rates but strictest requirements. SBA typically wants 680+ FICO, 2+ years in business, and a solid business plan.
If you are worried about bad credit, start with the products above that emphasize revenue over FICO. Many owners use the first deal as a bridge — build a payment history, then refinance into cheaper capital 6–12 months later.
How does it work?
Business loans are not one-size-fits-all. Here is how the most common structures actually function once you are approved.
Term loans
You receive a lump sum and repay in fixed installments over 1–5 years. Interest is calculated on the outstanding principal. Best for large, one-time investments.
Lines of credit
You are approved for a limit and draw only what you need. You pay interest on the drawn amount, not the full limit. Best for cash-flow gaps and seasonality.
Revenue-based financing
You receive a lump sum and repay as a fixed percentage of monthly revenue. Payments shrink in slow months and grow in strong months. Best for businesses with variable cash flow.
Merchant cash advances
You receive a lump sum and repay via daily or weekly deductions from card sales. The cost is expressed as a factor rate (e.g., 1.25x). Best for urgent, short-term needs.
Equipment financing
The lender buys the equipment and you repay over its useful life. The equipment is collateral, so rates are lower than unsecured products.
Factor rates vs APR: MCAs and some revenue-based products use factor rates instead of APR. A 1.3 factor rate on a $50,000 advance means you repay $65,000 total. Always convert to an effective APR to compare costs apples-to-apples.
Where does the money come from?
Small business funding comes from a mix of traditional and alternative sources. Here is a quick map of where each type of capital originates and when it makes sense.
SBA loans
Government-guaranteed bank loans with low rates and long terms. From traditional banks and credit unions. Best for established businesses that can wait 30–90 days.
Bank term loans
Direct lending from banks. Lowest rates for qualified borrowers. Requires strong credit, collateral, and a detailed business plan.
Alternative lenders
Online and fintech lenders offering revenue-based products, MCAs, and short-term loans. Faster approval, more flexible criteria, higher cost.
Equipment lenders
Specialized lenders and manufacturer financing arms that focus on machinery, vehicles, and technology.
Invoice factoring
You sell unpaid invoices to a factoring company for immediate cash. Your customer's credit matters more than yours. Best for B2B businesses on net-30 or net-60 terms.
The fastest way to find funding for a small business is not to knock on every door yourself — it is to use a broker who already knows which lenders fund your industry, revenue level, and credit profile.
See what you qualify for
Instead of guessing which lenders will say yes, pre-qualify through BizKred in minutes. One application, multiple funding partner matches, and no hard credit pull.
Frequently asked questions
How to get a business loan with bad credit?
Revenue-based financing, merchant cash advances, and equipment financing often weigh monthly revenue and deposits more heavily than personal credit score. Many owners with FICOs in the 500s still qualify when revenue is consistent.
Can you get a startup business loan with no money?
Traditional term loans and SBA programs usually require revenue history, but some revenue-based products and equipment financing can work for newer businesses if there is consistent monthly income or collateral. Pre-qualifying with a financing broker lets you see which lenders match your profile without a hard credit pull.
How do small business loans work?
You apply with business and owner information, bank statements, and a funding request. Lenders review revenue, credit, time in business, and use of funds. If approved, you receive a lump sum or line of credit and repay over a set term or as a percentage of revenue.
How hard is it to get a business loan?
It depends on the product. SBA and bank term loans have strict requirements and longer timelines. Revenue-based options, equipment financing, and merchant cash advances are generally more accessible but may carry higher costs.
How fast can you get funding?
Some revenue-based and working-capital products can fund in 24–72 hours once documentation is complete. SBA loans typically take 30–90 days. Term loans and lines of credit usually fall in between.