Getting started · 7 min read
How to get a small business loan, step by step
Most owners start by asking "how much can I get?" The better first question is what the money has to do, because that answer decides which type of funding fits and what it should cost you.
01Start with the job the money has to do
A one-time purchase, a seasonal gap, and a payroll cushion are three different jobs, and they point to three different products. Write down the amount, the date you need it, and how the money will pay for itself. If you cannot say how it pays for itself, that is worth knowing before you borrow.
02Know what a funder actually looks at
- Time in business. Under six months narrows your options sharply.
- Monthly revenue and deposit consistency. Steady deposits read better than one big month.
- Bank activity. Average daily balance, negative days, and NSFs carry real weight. See what underwriters look for in your bank statements.
- Existing positions. Advances already being debited daily or weekly affect what else you can carry.
- Credit profile. It matters, but on the revenue-based side it is one input among several rather than a gate.
03Gather the file once
For most revenue-based options you need basic information about the business and your three most recent months of bank statements. Have your legal business name, EIN, ownership percentage, and time in business ready. Bank-track and SBA options ask for more: tax returns, financial statements, and a debt schedule.
Assembling the file once and reusing it is what makes multiple offers possible without repeating yourself to five different callers.
04Compare offers on the same terms
Put every offer next to each other on the same six points: amount, term, payment size, payment frequency, total amount repaid, and fees. An offer with a smaller payment can easily cost more in total because it runs longer. An offer quoted as a factor rate is not quoting you an interest rate — here is how to read the real cost.
05What the timeline looks like
On revenue-based products a decision can come back within about 24 hours, and funding can follow the same day you finish signing. SBA and bank loans work on a different clock — plan in weeks, sometimes longer.
06Ask these before you sign
- What is the total amount I pay back, in dollars?
- What is the payment, and how often is it taken?
- Is there a discount for paying early, or is the full amount owed regardless?
- What fees come out of the funded amount?
- What happens in a slow month?
Want this applied to your own numbers?
Start a pre-approval — about a minute, and checking won't affect your credit — or call (732) 333-9155 and talk it through.