There are more business loan options available today than ever before. Nevertheless, knowing where to look and what to look for among traditional lenders, online lenders, non-profit lenders, and crowdfunders can be confusing. Today we’re going to talk about some of the basic qualification criteria to help you focus your search in those places where the odds will be in your favor.
Here’s a look at some of the most common options, what it usually takes to qualify, and where you’ll find them:
| Loan Type | Common Qualification Criteria | Where to Look |
| Bank Term Loan |
680+ personal credit score 2+ years in business Collateral (real estate, equipment, etc) |
Bank |
| SBA Loan |
650+ personal credit score Business plan and projections Good financial records Usually requires collateral |
Bank or Credit Union (sba.gov) |
| Short-Term Online Business Loan |
500+ personal credit score 1+ years in business $100,000 in annual revenue No specific collateral required |
Online |
| Long-Term Online Business Loan |
600+ personal credit score 1+ years in business $100,000 in annual revenue No specific collateral required |
Online |
| Merchant Cash Advance |
500+ personal credit score 6+ months in business $5,000/month credit card sales No specific collateral required |
Online |
| Online Invoice Financing |
500+ personal credit score 1+ year in business Guaranteed/steady cash flow No specific collateral required |
Online |
| Equipment Financing |
600+ personal credit score 1+ year in business $100,000 in annual revenue Equipment being purchased |
Equip dealers, banks and online |
You can learn more about common loan terms, typical loan amounts, and how long it takes to fund your loan HERE.
Click HERE to learn more about short-term loans and lines of credit offered by OnDeck.