Small Business Loan Requirements
We fund all businesses, from the most ancient, to those taking their first steps—and everything in-between.
$120,000 in Annual Gross Sales
Whether you do $120,000 or $12,000,000+ in sales, we got your back!
You don’t need to have squeaky-clean credit to qualify for a small business loan—we work with all credit profiles.
Benefits of Small Business Financing
Fast, Simple Funding Process
Gain access to small business funding in as little as 24 hours
Receive multiple loan offers from 75+ small business lenders
Financing for all 50 States, Canada, Puerto Rico and UK
No Industry Left BehindWe work with businesses from virtually every industry
Small Business Financing Through Our Global Marketplace
Small Business Loan Rates, Terms and Amounts
$10,000 – $5Mil
6 Months – 10 Years
1 – 3 Days
Loans for Small Business Uses
Get the small business capital you need to fund small business equipment, boost your inventory, hire staff, prepare for seasonal changes, help manage cash flow, and virtually any another opportunity or business challenge.
Use loans for small businesses capital to easily pay bills and vendors, manage payroll, and bridge gaps in cash flow.
Expand or Open a 2nd location, take on more clients, take advantage of bulk order discounts.
Small Business Loans Information 101
Quick Jump To…
- What are Small Business Loans?
- How Do Small Business Loans Work?
- What’s Considered a Small Business Loan?
- Why Get a Small Business Loan?
- How to Qualify for a Small Business Loan
- Approval Difference Between Banks
and Alternative Business Financing
- What are Small Business Loan Interest Rates?
- How Hard are Small Business Loans to Get?
- Are Small Business Loans Secured with Collateral?
- How Long are Small Business Loan Terms?
- Small Business Loans for Women, Veterans and Minorities
- How Much Small Business Loans Can You Get?
- Where to Apply for Small Business Loans
- How to Get Business Loans with Bad Credit
- Is Small Business Funding Legit?
- Information to Include on Your Application
- Books on Small Business Funding
- 90% Approval Rate
- No Collateral Needed
- Flexible Terms
- Increased Growth
What are Small Business Loans?
The term “small business loans” encompasses all small business financing options available.
Although, technically your business doesn’t have to be “small” in order to get one.
Each type of small business loan is unique in addressing different specific needs.
One type of small business loan helps entrepreneurs get new equipment. Another helps make unexpected purchases. Others help business owners with fair to bad credit scores, etc.
How Do Small Business Loans Work?
Small business loans act in very similar ways to personal loans. However, small business loans can only be used for business use.
If you’ve ever took out a mortgage loan, student loans, or any other type of loan for personal use, then you already have a good idea as to how they work.
A business financier lends money to a business owner, who can then use the capital to fund their specific needs.
The loan is then gradually paid off over time until all lended funds are depleted.
Different types of small business loans are paid off in different ways. Some come with fixed payment terms, in which a certain amount of capital and interest must be paid in regular predetermined intervals.
Others come with payment terms that offer flexible deadlines that are affected the nature of each small business loan itself, and not by predetermined payment periods. Similarly, business loan interest rates also differ depending on the type of small business loan you obtain.
We will explore these concepts in further detail below.
What’s Considered a Small Business Loan?
Any loan specialized exclusively for small business use is considered a small business loan.
Ironically, you don’t need to own a small business in order to obtain most of them. This excludes loan types such as SBA loans, which can only be obtained by small business owners.
If you would like to see if your business is considered “small” by the U.S. Small Business Administration (the SBA loan originator) and the North American Industry Classification System, click the link here to find out: What is a Small Business?
Other types of small business loans include:
- Business Term Loans
- Fast SBA Loans
- Small Business Equipment Loans
- Accounts Receivable Financing
- Revolving Business Line of Credit
- Merchant Cash Advances
- Purchase Order Financing
- Commercial Mortgage Loans
- Franchise Financing
- Secured Small Business Loans
- Unsecured Small Business Loans
- Startup Business Loans
- Medical and Dental Practice Loans
- Minority Small Business Loans
- Small Business Loans for Women
- Veteran Small Business Loans
Why Get a Small Business Loan?
Small business owners need a dependable source of funding in order to take on any opportunity, and solve any business challenge.
From taking on more customers, to hiring more staff, to purchasing materials, fixing broken equipment, managing payroll, to getting working capital in times of interrupted cash flow, at some point every small business needs help optimizing their operations.
Using your personal finances and business profits is one choice. However, most small business owners wind up switching to borrowing capital for several reasons, including:
- Not paying full expenses up front
- Saving cash with a lower cost of capital
- Protecting business and personal assets
- Saving valuable time and resources
- Bridging gaps in cash flow
How to Qualify for a Small Business Loan
All you need to qualify through National Business Capital & Services is:
- 6+ Months in Business
- $100K in Annual Gross Sales
- No Minimum FICO Required
However, small business loan qualifications will vary depending on the type of lender providing them, and the type of business loan you need.
For example, in order to qualify for an SBA loan, you will need:
- 2+ years in business
- $10K in Monthly Gross Sales
- And 685+ FICO
Approval Difference Between Banks
and Alternative Business Financing
Generally speaking, the better your business financials and credit score, and the longer you’ve been in business, the lower the small business interest rates will be, and the more desirable your terms will be.
Since there are no federal regulations that set fixed qualification standards for small business loans, it is up to the banks and other lenders themselves to create their own set of requirements for approval.
Traditional lenders including banks are known to set generally higher standards for approval. While this results in financing options with more desirable terms, it also means that the vast majority of small business owners do not match these requirements, and thus denied funding.
Choose alternative business financing for easier approval, with financing options that offer the same if not better terms than banking and traditional lending offers.
What are Small Business Loan Interest Rates?
Interest rates vary depending on the type of small business loan acquired.
The two most common types of rates include annual percentage rate and factor rate, although many other interest rate types are also offered via alternative financing.
Factor rates are the most common type of interest rates among fixed-rate small business loans. These are represented by a fixed decimal number which sets the rate for the lifespan of the business term loan.
Annual percentage rate, or APR, is represented by a percentage. This percentage fluctuates depending on the amount drawn from financing options such as a credit line by a business owner within a given year.
APR rates provide more control and planning opportunities for business owners to determine how little or how much they pay in interest. Factor rates, on the other hand, give business owners a more solid and consistent knowledge as to exactly how much they will have to pay within a given time.
There are, however, small business loans that do not follow interest rates at all. These include merchant cash advances, in which a fluctuating portion of sales are used to pay off a lump sum of money, given to the business owner in advance.
SBA loan rates, on the other hand, are largely bound generally lower government prime rates.
With such a wide spread of different rates to choose from, speak to an advisor before moving forward with rates you aren’t completely comfortable with.
How Hard are Small Business Loans to Get?
This answer changes depending on the channel you seek financing through.
90% of the clients who apply through National Business Capital & Services get approved, due to our simplified process, and easier small business loan approval qualifications.
In contrast, banks are typically the tougher type of lender to get funding through due to small business loan approval requirements that most entrepreneurs cannot meet.
They are also a much slower at processing funds, due to more banking regulations and institutional paperwork requirements.
Alternative business lending allows for expedited processing with minimized paperwork and less red tape, resulting in business owners gaining access to funds in a fraction of the time taken by traditional lenders.
Are Small Business Loans Secured with Collateral?
Some are, and some aren’t. “Secured” small business loans, meaning small business loans that require collateral, are leveraged by a form liquid or capital assets.
The collateral required by most small business loans, however, takes the form of indirectly-owned assets, instead of personal or business assets including real estate.
Indirectly-owned assets that can take the form of collateral include newly leased or purchased equipment, customer invoices, and portions of future sales.
“Unsecured” financing, or small business loans that have no collateral requirements are also available through alternative financing.
This offers protection of one’s assets in case of foreclosure, as well as an expedited funding process, due to no valuation process having to take place.
How Long are Small Business Loan Terms?
Generally speaking, small business loan terms can range anywhere from 6 months to 10 years.
SBA loan terms last anywhere between 10 to 25 years.
Although most small business owners shoot straight for options with longer terms due to their smaller payment installments, this is not always the best option for every business.
For many businesses, short term financing options may be the best solution to their business needs, and provides a lower overall cost of capital long-term, as well as valuable time, energy and immediate funding relief.
Be sure to consult with a Business Financing Advisor to determine the best term length option for you.
Small Business Loans for Women, Veterans and Minorities
The alternative financing space offers small business loans for demographics known to have a tough time getting financing to grow and improve their businesses.
These small business loans include:
How Much Small Business Loans Can You Get?
You can get as many small business loans as you like at a time. The decision of how much business loans you should get is a different story.
Most small business financiers advise that you only take out one or two at a time.
Some small business loans compliment each other perfectly, such as fast business loans and SBA loans, and can benefit small business owners in ways not possible by themselves.
It’s crucial that you speak to a Business Financing Advisor before applying to more than one small business loan at a time, so as not to be overwhelmed and over complicate potentially simple funding needs.
Where to Apply for Small Business Loans
Many types of small business loans are offered by both federal and independent business financing companies.
However, the variety of options varies depending on the type of lender you choose.
Most direct lenders tend to offer very few financing options. These lenders often specialize in providing these single or few types of small business loan options, which makes competent direct lenders a valuable asset when seeking specific types of business funding.
This goes for banks as well. Most small business owners go to banks to apply for SBA loans alone. However, there are banks that offer other types of small business loans, though not as many as those offered by alternative financing companies.
As an alternative financing company, National Business Capital & Services has exclusive connections to more than 75+ lenders in the global marketplace, made up of all types of specialized lenders, along with traditional lenders as well.
That’s what makes our services so valuable to small business owners-if you’re looking for a loan from a certain bank or lender, we can get that for you.
If you would like to explore all of your options, and find you the perfect small business loan in the marketplace for you and your business, we can do that too.
How to Get Small Business Loans with Bad Credit
Getting small business loans with bad credit through a bank is nothing short of impossible.
On the other hand, independently set standards by National Business Capital & Services allow for the approval of all credit profiles, regardless of how low small business FICO scores may be, and how blemished their financial histories.
Click the link here for more information regarding small business loans for bad credit: How to Get Small Business Loans for Bad Credit
Is Small Business Funding Legit?
Yes! There are small business financing options exclusively for businesses with smaller staff sizes and revenue streams that cannot be obtained by larger-scale businesses. One of these options include SBA funding.
They’re also legitimate in a legal sense as well. Although not all small business loans are held to federal regulations, others are regulated at the state level, so you can rest assured that your financing is safe and secure.
Small business loans that are not bound to federal regulations work in the small business owner’s benefit. These regulations result in extreme wait times to access funding, and unreasonable qualification requirements.
Through alternative business financing methods, small business owners have the security of knowing their deal is safe, without going through the amounts of red tape necessary to access funds from lenders such as banks.
Information Needed for Your Application
All you need to include in your secure online application is:
- Your name and phone number
- Email address
- The name and address of your business
- Yearly gross sales
- Your desired loan amount
- Time in business
- The type of industry you’re in
- Your credit score (Optional)
- And how you intend to use your financing!
After that, a Business Financing Advisor will contact you in minutes to learn more and consult with you in finding the best small business loan for you and your business goals.
Books on Small Business Funding
For more information on small business funding, download our free Ebook “How to Get Business Funding When Banks Say ‘No!’”
Learn everything you need to know about how small business funding offered by alternative business financing is changing the economic climate for the betterment of small businesses nationwide!
9 Reasons Why National Business Capital & Services Offers the Best Small Business Financing
Why Choose National Business Capital & Services for a Small Business Loan?
Better Terms. Faster Funding. Easier Process.
As an industry leader since 2007, National Business Capital & Services understands that every business has its own story, with their own unique goals for growth. National listens carefully to YOUR story before connecting you with a Global Marketplace of over 75+ Lenders to find small business financing with larger offers and better terms to grow your business quickly and easily. You will be paired with a Business Financing Advisor, who will be there to help answer any questions, and guide you through the financing process from start to finish.
Traditional lenders have a history of making funding for small businesses an incredibly long and difficult process, and end up hurting rather than helping the applicants they serve more often than not. The variety of small business loans offered by National serve as alternative funding options for small businesses that seek simple and immediate funding with an emphasis on transparency and efficiency.
National has revolutionized the small business capital funding process by simplifying the application and eliminating unnecessary paperwork, giving you the ability to secure financing in as little as 24 hours to a few days.