How to Get a Business Loan in 5 Steps

*Some links on this page are affiliate links which means that, if you choose to make a purchase, we may earn a small commission at no extra cost to you.  See Affiliate Disclosure.* 

If you’re interested in how to get a business loan in 5 steps, read on to learn more about getting a business loan and why it doesn’t have to be so difficult.

Getting a Business Loan in 5 Steps

Many small business owners are intimidated by the business loan application process because they feel that they may not have the required documents in order to get a business loan. We’re here to discuss how to get a business loan in 5 steps and let you know that the process doesn’t have to be so complicated if you’re willing to work with different online lenders or certain business loan brokers. The old saying that in order to get a business loan you need to convince the bank that you don’t NEED a business loan may still be true with traditional brick-and-mortar banks and credit unions, but the Internet and online business lending have helped to change that to an extent. There are still steps, requirements, and documents needed in order to get a business loan, but it shouldn’t be too intimidating of a process if you really want to get a business loan. Here are some ways that you can prepare to get a business loan that may make getting a business loan not only less complicated, but also more likely.

Compare Multiple Business Lenders and Business Financing Options

You may find it wise to compare business lenders using a business loan comparison website BEFORE you apply with any specific business lender or before you choose a business loan broker to help you find a business loan. Working with a business loan broker may be a good option, but first, make sure that they are paid by the lender and not by you before you choose a business loan broker. You will also want to compare multiple business financing options because there are business financing options that are more flexible than a business term loan but may also have higher interest rates.

Decide What Type of Business Financing You Want and Need

You will want to compare several business financing methods and decide which one is right for your business. There are many business financing options such as, but not limited to business term loans, business lines of credit, working capital loans, franchise loans, merchant cash advances, accounts receivable loans, inventory loans, startup loans, freight factoring, invoice factoring, and more.

Determine Your Budget, The Amount, And If You’ll Use Collateral

Once you determine which type of business financing you will use, you’ll need to determine how much of a payment you can afford each month and you will want to take into consideration your slow season(s), downturns in sales, emergencies, and other business setbacks that could make it difficult for you to meet your monthly payment. Before you apply for a business loan, make 100% sure that you can repay your business loan each and every month. Once you know the amount you need to borrow to meet your business goals (open, expand, working capital, etc.) you will need to know the loan terms such as the monthly payment, length of payments, and the number of payments.

You will also want to know if the interest rate is fixed or variable, whether or not the loan requires a personal guarantee, whether or not the loan is secured (requires some form of collateral) or is unsecured, and several other features related to the business loan or business financing product. If you must use collateral (avoid this if at all possible), you will need to determine what type of collateral you will want to use (deposit account, equipment, real estate, etc.).

Make Sure You Meet The Lender’s Requirements

Before you apply for a business loan or business financing option, you will want to use a business loan comparison website AND visit multiple business lenders’ websites to see what the basic lender requirements are for each lender and determine which lenders you can meet the requirements for before applying. For example, if you sign up through the A.I. business funding marketplace through the link on Lendzz.com, you can get matched with different business lenders, but you typically must have been in business for at least 6 months and need a minimum personal credit score of 650 or higher and must meet additional criteria to qualify. Different lenders may have different requirements. Some, but not all, business lenders may require you to have a business credit score which can be obtained if you build business credit correctly. You may want to visit our business credit services comparison page to learn more about building business credit.

Apply for a Business Loan With The Required Documents

There are some online business lenders that will let you start the business loan application process without a hard credit pull and without submitting many documents.  Just for example, You can start your basic business loan application through the AI business loan marketplace by simply answering a few questions, but when it’s time to formally apply for a business loan, you will need a variety of documents and information about your business and most likely also information about yourself. These items may include but are not limited to your phone number, social security number (if a personal guarantee is required), email address, phone number, address, business address, business phone number, business email, business tax ID number, or EIN, three years of business tax returns (if applicable), three years of business income statements (if applicable), and business bank statements. Not all lenders require all of these documents, but these are some of the documents that some lenders will require.

Scroll below to compare business lenders, loan brokers, and business financing providers OR visit our business financing comparison page.

Company

Financing Programs

Ratings

National Funding Small Business Financing
 

 National Funding

 $3 billion funded

50,000 businesses funded

 Multiple business funding options

 Lines of Credit

 Equipment Financing

 High approvals

 

National Business Capital

 

 75+ lender marketplace

 Business loan broker service

 Business term loans

 Multiple business financing plans 

 Business lines of Credit

 

 

 

 SuperMoney Business Financing 

 One search, many options

 Multiple business financing options

 Business loans up to $5m

 Multiple options

 Compare top business lenders

 

Compare Business Lenders & Brokers & Find Business Loans In USA

NAV Business Credit & More

 

 Nav.com Business Financing

 Business credit programs

 Multiple vetted lenders

 Business lines of credit

 Business credit cards

 

 Fundera.com Financing Marketplace

 Business lending programs

 Multiple vetted lenders

 Business lines of credit

 Business credit cards

 

 eCapital Business Financing 

 eCapital invoice factoring programs

 Fast, flexible funding

 Business invoice factoring

 Invoice factoring solutions

Lendzz | Find Lenders, Loans & Financial Products
 

 Torro.com

 Torro business financing programs

 $25k a month minimum revenue

 Fast business funding

 Flexible business financing options