Your ultimate guide to
small business loans
May 1, 2018
Your business feels like it’s bursting at the seams and the time is finally right to expand. Maybe you need a loan to hire new employees, buy updated equipment, or relocate your headquarters to a larger office. But getting small business loans is a long, arduous process, right? We don’t think it needs to be.
The first step to getting a small business loan starts with your credit scores — both of them. Too many small business owners have relied on their savings and personal credit to fund their ventures. In fact, about half of small business owners use their personal credit to fund their business in some way, so you’re not alone. But this is seriously problematic. If you’re guilty of intertwining your personal and business finances, separating the two and establishing a business credit profile is key to locking down additional funding.
With that in mind, here are some of the pain points of small business loans and how to get past them so you can find the right financing for your business.
Business credit scores matter
While not all business loan options require you to have a business credit score, your options are certainly limited if you’re a business credit ghost. Business credit scores use some of the same factors (such as payment history) to determine your score, but there are some important differences. Establishing and building your credit is key if you’re serious about getting a loan.
44+ types of business financing
Yeah, you read that right. And those 44 different types of financing can be hard to sift through, even if you’re asking the right questions. How can you tell if you’re getting a good deal? How will you know which one is the right loan type for your business model? How long will you be paying it off? All of these are valid questions that our experts can help you answer.
Small business loan terms are unique
Just like your business credit scores are different from your personal credit scores, your business financing options are different from the personal financing you’re probably familiar with. Repayment timelines, APRs, and origination fees are all structured differently, and the consequences of picking the wrong loan for your business can hurt your bottom line.
Business loan types
Learn the ins-and-outs of each loan type so you can choose the right one
Business line of credit
- Credit Amounts
- Up to $150k
- Turnaround Time
- Up to 5 days
Non Bank, Online Loan
- Loan Amounts
- $5k - $500k
- Turnaround Time
- 2 - 14 days
Merchant Cash Advance
- Loan Amounts
- $200 - $250k
- Turnaround Time
- Minutes - 1 week
Cash Flow Loan
- Loan Amounts
- $200 - $100k
- Turnaround Time
- Minutes - 3 days
Business Credit Cards
- Loan Amounts
- $250 - $25k
- Turnaround Time
- 1 - 3 weeks
Equipment Loan
- Loan Amounts
- $5,000 - $5M
- Turnaround Time
- 1 - 4 weeks
Apply with confidence
Nav works for you, not the lenders. Our marketplace filters over 100 of the top business financing products and matches you to the best, based on your approval odds. You can apply online and get a decision in minutes.
Business financing 101
Get the best loan for you – no matter what category you’re looking for
Ben Luthi
Gerri DetweilerBusiness Loan Calculators
Find out the true cost of a loan before applying
You may have heard the terms APR and interest rate used interchangeably—but they’re not. The main difference is that APR looks at the entirety of the loan cost, including fees. We think using a business loan calculator is the best way to make an apples-to-apples loan cost comparison. Origination fees, maintenance fees, factoring fees, and daily repayment schedules are not unheard of when it comes to business loans—be sure to read through the full terms of your loan offer before committing to that kind of repayment.
