How to Get a Business Loan, Step by Step

Step 1: Define what the money must produce

Decide the amount, the use and the return. A loan makes sense when the added profit clearly exceeds the cost of borrowing.

Write one sentence: I need $X to do Y, which should add $Z in profit within N months. If you cannot fill in Z, pause. Illustrative example: $60,000 for a new delivery vehicle that adds $4,000 a month of profit pays back its purchase in 15 months, before financing cost.

Our guide to the right business loan amount and the loan ROI calculation help you check this.

Step 2: Know where you stand

Funders look at personal credit, time in business, monthly revenue, existing debt and industry. Know your numbers before you apply.

• Credit score. Check your personal score and any business credit file.
• Time in business. Many online funders want 6 months or more; banks and SBA lenders often want longer.
• Revenue. Recent bank deposits matter more than projections.
• Existing debt. Add your monthly obligations to see what you can afford.

Read credit requirements for a business loan and how to get loan-ready before you apply.

Step 3: Gather documents

Expect to provide an application, bank statements, and for larger loans, tax returns, financial statements and ID. Online funders ask for less.

Banks and SBA lenders usually want tax returns, profit and loss statements, a balance sheet, a debt schedule and often a business plan. Faster online options may need only an application and recent business bank statements. At ROI Funder, a complete file is the application plus three months of business bank statements.

See the full loan application checklist and documents needed for financing.

Step 4: Pick the right product

Match the product to the use: a term loan for a one-time project, a line of credit for recurring needs, equipment financing for assets, SBA for the lowest cost if you can wait.

If you need help choosing, use which funding fits your business.

Step 5: Compare offers on true cost

Compare total dollars repaid, repayment period and the monthly-equivalent payment. Do not compare only the headline rate.

Offers can use interest rates, factor rates, fees or a mix. Convert each one to the same measure: how many dollars you repay in total, over how many months, and what the payment is on a monthly basis. Check for origination fees deducted from the amount you receive, prepayment terms and whether a personal guarantee or lien is required.

Use the worksheet for comparing two funding offers and run a stress test on slower months.

Step 6: Apply and close

Apply, review the agreement carefully, sign and receive funds. With ROI Funder, approved complete files can fund the same business day.

ROI Funder works with a network of funders and matches your file to those that fit. Funding ranges from $5,000 to $5,000,000 across all 50 states for businesses with 500+ FICO, 6+ months in business and $20,000+ monthly revenue. Applying is online, takes a few minutes, uses a soft credit pull and carries no obligation to accept an offer.

Read the full agreement before signing. Ask about early payoff, default terms and what the funder can do if you miss payments. Our team's track record is $2B+ funded across 40,000+ businesses. See how it works.