Step 1: Know your three key numbers
Before you apply anywhere, you need to know three things about your business. These three numbers determine which loan products you can access and how large an offer will be.
1. Your credit score
Pull your personal credit score for free at AnnualCreditReport.com or through your bank. Business credit scores (Dun & Bradstreet Paydex, Experian Business) matter too, but personal credit is the primary signal for most alternative lenders. Know where you stand:
- 680+ — Qualifies for SBA loans, traditional bank lines, and most online term lenders
- 620–679 — Online term lenders, working capital programs, some bank products
- 580–619 — Revenue-based financing (MCA), working capital, some non-bank lenders
- 500–579 — MCA programs with strong revenue requirements; most other products unavailable
If your credit is in the 500–650 range, see our full guide: Business Loans for Bad Credit →
2. Your monthly gross revenue
Calculate the average gross revenue (or bank deposits) your business brings in each month over the past 3–4 months. This is what alternative lenders use to size your offer. Most alternative funding programs require a minimum of $10,000–$15,000/month in deposits, with many wanting $25,000+.
3. Your time in business
How long has your business had an active bank account? Most alternative lenders require 3–6 months minimum. The longer you have been operating, the more options you have. SBA loans typically require 2+ years.
Step 2: Choose the right type of business loan
There is no single "best" business loan — only the loan type that fits your specific situation. Here is how to match your need to the right product:
Revenue Based Financing (Merchant Cash Advance)
Best for: Businesses with bad or fair credit, urgent needs, card-heavy sales (restaurants, retail, salons)
Speed: 1–3 business days
Cost: Higher — factor rates of 1.15–1.49
Repayment: Percentage of daily/weekly sales
→ Learn about Revenue Based Financing
Working Capital Loan
Best for: Short-term operating needs — payroll, inventory, seasonal gaps
Speed: 2–5 business days
Cost: Medium — depends on lender and term
Repayment: Fixed daily, weekly, or monthly payments
→ Learn about Working Capital Loans
Business Term Loan
Best for: Established businesses with good credit wanting predictable payments and lower rates
Speed: 3–10 business days
Cost: Lower than MCA — fixed APR
Repayment: Fixed monthly payments over 1–5 years
→ Learn about Business Term Loans
SBA Loan
Best for: Strong credit (680+), 2+ years in business, willing to wait
Speed: 30–90 days
Cost: Lowest — government-backed rates
Repayment: Long terms (5–25 years)
Equipment Financing
Best for: Purchasing specific equipment — trucks, machines, technology
Speed: 2–7 days
Collateral: The equipment itself
Repayment: Fixed monthly payments
→ Learn about Equipment Financing
The 60-second form on SmallByzLoans routes your file to a specialist who matches you to the right program based on your revenue, credit, and funding purpose. No commitment required.
Step 3: Gather your documents before you apply
Having your documents ready before you start speeds up the process significantly. For most alternative lenders you need:
- 3–4 months of business bank statements — PDFs downloaded directly from your bank (not screenshots)
- Government-issued photo ID — Driver's license or passport
- Voided business check — Confirms routing and account number
- Basic business info — Legal business name, EIN, business address
SBA loans require more: 2 years of tax returns, profit & loss statements, balance sheet, and a business plan. Traditional bank loans have similar requirements.
Full checklist: Documents needed for fast business funding →
Step 4: Submit your application
For alternative lenders, the process starts with a short form — not a full application with 20 pages of documentation. The short form on SmallByzLoans takes about 60 seconds and asks for:
- Business name and owner contact details
- Requested funding amount
- Estimated monthly revenue
- Time in business
- Estimated credit score range
- Purpose for the funding
After submission, a funding specialist reviews your profile, contacts you directly, and — if you qualify — routes you to the full application where you upload bank statements and complete identity verification.
Step 5: Review your offer carefully
This is the step most borrowers rush — and it's the most important. When you receive a funding offer, review these elements before signing anything:
For revenue-based financing / MCA:
- Advance amount — How much you receive
- Factor rate — e.g., 1.30 means you pay back $1.30 per $1 advanced
- Total payback amount — Advance × factor rate = total you repay
- Daily/weekly payment — Does this fit your real cash flow? Don't accept a daily payment you can't cover
- Retrieval rate — What % of daily card sales is deducted
- Term — Estimated months to repay at current revenue
For term loans:
- APR — Annual percentage rate for apples-to-apples comparison
- Monthly payment — Fixed amount due each month
- Prepayment penalty — Can you pay off early without a fee?
- Origination fee — Deducted from funded amount or added to balance
Want to understand how factor rates work in dollars? Read: What is a factor rate? →
Common mistakes that get business loans denied
- Applying when you have multiple NSFs — Clean up your bank account for 30–60 days first
- Too many pending MCA positions — High existing balances relative to revenue reduce what you can borrow
- Applying for more than you can support — Size your request at 80%–100% of monthly revenue, not more
- Submitting incomplete bank statements — Missing pages cause delays and sometimes automatic declines
- Mixing personal and business finances — Lenders want to see clean business-only bank activity
What to do if you get declined
A decline from one lender doesn't mean the answer is no everywhere. Here's what to do:
- Ask specifically why you were declined
- Address the issue: reduce NSFs, pay down existing balances, wait for more time in business
- Try an alternative lender — different underwriting criteria means different outcomes
- Consider a smaller amount — a smaller request may qualify when a larger one doesn't
Read our full guide: What to do after a business loan decline →
Business loan FAQ
How long does it take to get a business loan?
Revenue-based financing: 1–3 business days from document submission. Working capital: 2–5 days. Online term loans: 3–10 days. SBA loans: 30–90 days. Traditional bank: 2–8 weeks.
What credit score do I need?
Alternative lenders: 550–650+. Online term lenders: 620–680. SBA: 680+. Traditional banks: 700+. Revenue-based financing is the most accessible if your score is below 620. See: Can I get a business loan with a 650 credit score? and business loan requirements.
How much can I borrow?
Alternative programs typically offer 80%–150% of monthly revenue. Strong files with long operating history and good deposits can access larger amounts. SmallByzLoans connects businesses to funding from $10,000–$10,000,000.
Do I need a business plan to get a loan?
Not for alternative lending (MCA, working capital, revenue-based). SBA loans and traditional bank loans typically require a business plan along with financial projections.
Is it better to get a business loan from a bank or online lender?
Banks offer lower rates but require strong credit (680+), 2+ years in business, and extensive documentation — and the process takes weeks. Online and alternative lenders are faster, more accessible with lower credit, and have simpler applications — but cost more. The right choice depends on your credit, timeline, and how much you can pay in total cost. Compare: MCA vs. Business Term Loan →
Ready to check your options?
The 60-second form gets your profile in front of a funding specialist who matches you to the right program. No cost to check, no hard credit pull.
Frequently Asked Questions
How long does it take to get a business loan?
It depends on the loan type. Revenue-based financing (MCA) can fund in 1–3 business days once documents are in. Working capital loans typically take 2–5 days. SBA loans can take 30–90 days. Traditional bank loans take 2–8 weeks. The 60-second form on SmallByzLoans starts the review process immediately — a specialist contacts you to continue.
What credit score do you need for a business loan?
It varies by lender and product. SBA and traditional bank loans typically require 680–720+. Alternative lenders offering revenue-based financing and working capital loans commonly work with 550–650. A few programs consider scores below 550 when monthly revenue is strong.
How much can I borrow for my business?
Loan amounts are typically sized at 50%–200% of monthly gross revenue for alternative programs. A business with $50,000/month in deposits may qualify for $50,000–$100,000 depending on credit, time in business, and existing debt. SBA loans can go up to $5 million.
Can I get a business loan with no revenue?
Alternative business loans require at least some revenue — most programs need $10,000+ per month in deposits and 3–6 months in business. If you have no revenue yet, business credit cards, personal loans, or small business grants may be the only options until revenue is established.
Do business loans require collateral?
It depends on the loan type. SBA and traditional term loans often require collateral. Revenue-based financing (MCA) and working capital loans typically do not — underwriting is based on revenue and deposits. Equipment financing uses the equipment itself as collateral.