Shop For Small Business Loans
Small business loans can be an important factor in your success as a small business owner. We’ve partnered with leading lenders to provide you with the following financing options for your business.
Business Cash Advance by Credibly
How to Apply for a Small Business Loan
The application process for each lender may be somewhat different but it will generally involve the following:
You’ll share details about your business. You’ll typically be asked about:
- The start date of your business. If your business is incorporated, you can use that date but if not, you may use the date you received your Employer Identification Number from the IRS or the date you got your business license. If you have none of that information, you should use the date you officially started your business.
- Your business address and phone number. (Home based businesses may use a home address but you may want to consider getting an official address for your business as well as a separate business phone number).
- Your Employer Identification Number (EIN) if you have one. If you are an unincorporated business (sole proprietorship) you may use your Social Security number or Taxpayer Identification Number (TIN) but it’s a good idea to request a free EIN from the IRS.
- Identification. If you don’t have a prior relationship with the lender you will likely need to supply a driver’s license or passport to verify your identity.
You’ll agree to a credit check. Not all financing offers will involve a personal credit check but many will. Oftentimes a personal credit check is a “soft” credit check that doesn’t impact your personal credit scores, but if you’re concerned about this be sure to ask. Some lenders will also check business credit scores.
You will verify business revenues. Some lenders will allow you to provide copies of recent bank statements (3-6 months is typical) or business tax returns plus up-to-date financial statements. Increasingly though, lenders will ask you to link your business bank account so they can analyze your business revenues to determine if you meet their requirements.
Some types of financing may have other requirements. For example, for invoice factoring you may need to supply an accounts receivables (A/R) aging report that shows your outstanding invoices. For loans with collateral, such as equipment or real estate, you may need an appraisal.
Once you have submitted the required documentation, the financing company or lender will make its decision. Online lenders can typically offer a preliminary decision very quickly. They will then request any additional documentation so they can underwrite the loan and make an offer.
Banks tend to take longer to approve loan applications, and a lot more documentation may be required. Expect more back and forth, greater scrutiny, and a longer wait before you get a decision.
Once you are offered financing you’ll want to read the loan documents carefully to make sure you understand the terms of the financing, including daily or monthly payments, the cost of the financing and whether a personal guarantee is required. Some financing sources may require you to use some of the proceeds to refinance other debt.
Once you accept you can expect funds in your account within hours, or up to a couple of days depending on the lender.
Small Business Loans: Compare Financing Options
Looking for a small business loan? When it comes to small business loans, one size does not fit all. Find the best option to meet your business needs at Clade Point.
Compare Types of Small Business Loans Financing Options
| Type of Small Business Loan | Good For | Estimated APR | Required Credit Score |
|---|---|---|---|
| SBA Loans | Low-interest working capital; refinancing debt, equipment | 1-15% | 155 FICO SBSS *some lenders may require higher |
| Traditional Bank Loans | Versatile loans for a variety of purposes | 4-15% | 680+ FICO |
| Merchant Cash Advance | Quick access to capital if you don’t have great credit | 10-350% | 550 FICO *sometimes no score is required |
| Business Lines of Credit | Access to funds when you need them | 10-90% | 500 – 680+ FICO |
| Microloans | Businesses with thin credit profiles looking for small loan amounts | 12-18% | Varies |
| Cash Flow Loans | Quick access to cash without great credit | 11.0-90% | 600 FICO |
| Alternative Online Loans | Quick access to cash without great credit | 11.0-90% | 600+ FICO |
| Business Credit Cards | Fast turnaround time with less required documentation | 7-30% | 650+ FICO |
| Equity Crowdfunding | Capital without having to repay; experienced investors can act as mentors | Fees often total 5% of amount raised | n/a |
| Reward Crowdfunding | Testing out your idea; capital you don’t have to repay | Crowdfunding platform: 0-5% Payment processing: 3%+$.30 per transaction | n/a |
| Equipment Financing | Capital to buy equipment that doesn’t require asset (other then equipment) | 15-35% | 620+ FICO |
| Invoice Financing | Leveraging future accounts receivable | 15-25% | n/a |
| Trade Credit | Building credit | 5-25% | May or may not be applicable |
