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Business Loans

Guide to business loans: how they work and how to choose

A business loan gives you money now in exchange for repayment with a cost attached. This collection explains the types, how rates and terms work and what you need to qualify, so you can compare options before you apply.

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Learn how loans work before comparing offers

Understanding repayment structure matters more than the headline rate, because identical rates can cost very different amounts.

Start with how business loans work, then read business loan terms so words such as factor rate, term and APR are clear. The business loan rates guide shows how to compare costs fairly.

Types of loans and who each one fits

Different products solve different problems, so match the product to the use of funds.

The types of small business loans guide maps the field. Short repayment suits quick returns, equipment financing suits machines that hold value, and SBA loans suit patient borrowers who want the lowest cost. See which funding fits your business for ROI Funder's own comparison.

Requirements and the application

Lenders mainly look at revenue, time in business, credit and bank activity.

Read business loan requirements to see what documents to gather. With ROI Funder, the file is the application plus three months of business bank statements, and applying uses a soft credit pull with no obligation to accept an offer.

A checklist before you apply

Prepare a few facts and the application goes faster.

  1. Write the purpose and the amount you need.
  2. Estimate what the money will produce and over what period.
  3. Gather three months of business bank statements.
  4. Compare the total repayment, not only the rate.

This preparation also helps you say no. If the numbers do not work on paper, a faster offer will not make them work.

Run the payback math first

A loan is worth taking when what it produces exceeds what it costs.

Write down the expected added revenue, the total repayment and the payback period. The guide on reasons to get a business loan helps test your purpose, and how to get a business loan walks through the steps.

Guides in this collection

Frequently asked questions

What is the easiest business loan to qualify for?

Products based on revenue and cash flow, such as working capital or revenue-based financing, generally have lighter requirements than SBA loans, usually at a higher cost.

Does applying hurt my credit?

At ROI Funder, applying uses a soft pull, which has no impact on your credit score, and you are not obligated to accept an offer.

How fast can I get funded?

On approved, complete files, ROI Funder funds the same business day. Term loans take 1-5 days, lines 24-72 hours, equipment 2-7 days and SBA loans longer.