Small Business Loans
Funding for Your Today (and Your Tomorrow)
Whether you’re looking to invest in a new business opportunity or navigate a difficult period, a small business loan can provide the financial flexibility you need to keep your operations running smoothly and growing.
At iBusinessLender, we are dedicated to helping entrepreneurs thrive. We achieve this by partnering with reputable lenders nationwide. Through our trusted network, we can quickly deliver multiple financing offers to meet your needs.
Discover how to compare your options and select the best offer for your business today!
SECTION 1
Types of Small Business Loans
There’s no universal business financing solution. Fortunately, you can support your day-to-day operations and company growth initiatives through various business loans and financing products.
At iBusinessLender, we offer the following online business loans and financing options:
Term Loans
With a business term loan, you receive a lump sum of capital upon approval, repaying the funds with interest in equal installments over a set period.
Short-term loans: 3 to 18 months
Medium-term loans: 1 to 5 years
Short-term loans typically require more frequent payments, often weekly or daily, compared to the monthly payments of medium-term loans. However, same-day funding can be available.
Who Qualifies?
| Criteria | Short-Term Loan | Medium-Term Loan |
|---|---|---|
| Time in Business | 1+ year | 1+ year |
| Annual Revenue | $75,000+ | $200,000+ |
| Credit Score | 540+ | 600+ |
Loan Specifics
| Criteria | Short-Term Loan | Medium-Term Loan |
|---|---|---|
| Funding Amount | Up to $500,000 | Up to $250,000 |
| Interest Rate | Starting at 10% | Starting at 7% |
| Repayment Term | 3-18 months | 1-5 years |
| Speed of Funds | Same day | 1 day |
Lines of Credit
For flexible contingency financing, consider a line of credit. Once approved, you can draw from your credit line for emergencies, unexpected bills, operating expenses, and more. While a nominal fee per withdrawal (e.g., 1%-3% of the borrowed funds) may apply, interest is only charged on the amount you use.
Most credit lines are revolving—as you pay down your balance, your credit line is restored, allowing you to keep borrowing up to your limit.
Who Qualifies?
- Time in Business: 1+ year
- Annual Revenue: $200,000+
- Credit Score: 560+
Loan Specifics
- Funding Amount: Up to $250,000
- Interest Rate: Starting at 8%
- Repayment Terms: 1 to 5 years
- Speed of Funds: 1 day
Equipment Financing
Equipment financing is asset-based, specifically for equipment loans or leases. The equipment you intend to purchase or lease serves as collateral. Depending on the equipment’s condition and your qualifications, you can finance up to 100% of its value.
Who Qualifies?
- Time in Business: 2+ years
- Annual Revenue: $160,000+
- Credit Score: 620+
Loan Specifics
- Funding Amount: Up to 100% of equipment value
- Interest Rate: Starting at 8%
- Repayment Term: 1 to 5 years
- Speed of Funds: As fast as 2 days
SBA Loans
Small Business Administration (SBA) loans are serviced by participating banks, credit unions, and alternative lenders and are partially guaranteed by the SBA. This guarantee reduces the risk for the lender, encouraging lending to small business owners. Additionally, SBA loans have capped interest rates, making them one of the most affordable small business loans available.
Who Qualifies?
- Time in Business: 2+ years
- Annual Revenue: $50,000+
- Credit Score: 650+
Loan Specifics
- Funding Amount: Up to $350,000
- Interest Rate: Starting at 7%
- Repayment Term: 5 to 10 years
- Speed of Funds: As fast as 7 days
Merchant Cash Advances
A merchant cash advance allows a business to borrow against its future profits. These are short-term financing options meant to be repaid quickly, often with automatic daily payments. They can be processed rapidly and are an option for borrowers who may not qualify for other types of funding due to limited time in business or poor credit.
Who Qualifies?
- Time in Business: 4+ months
- Annual Revenue: $100,000+
- Credit Score: 500+
Loan Specifics
- Funding Amount: Up to $500,000
- Factor Rate: Starting at 1.10
- Repayment Term: 3 to 24 months
- Speed of Funds: As fast as same day
Invoice Factoring
In an invoice factoring agreement, a business sells its accounts receivable balance to a financing provider. The funder issues an advance on the invoice’s face value (e.g., 80%). When the customer pays the invoice, the provider releases the remaining balance to the borrower, minus a fee. The fees are tied to the time it takes for your customers to pay their invoices.
Who Qualifies?
- Time in Business: 1+ year
- Annual Revenue: $150,000+
- Credit Score: 600+
Loan Specifics
- Funding Amount: Up to 80% of receivables
- Factor Rate: Starting at 1.02
- Repayment Term: Until receivables are paid
- Speed of Funds: As fast as same day
SECTION 2
What Type of Financing Makes Sense For My Business?
To determine the most suitable types of business loans for your needs, consider what you require, the purpose of the funding, and your timeline. It’s also important to take into account your business profile and the specific demands of your industry.
Funding Needs
Consider the specific needs of your business when exploring small business loan options. Ask yourself:
- Are there cash flow gaps between completing a service and receiving payment?
- Is your industry seasonal?
- Do you want to improve your credit?
- Are your needs short-term or long-term?
Generally, debt shouldn’t outlast the life of an investment. For example, if you’re purchasing seasonal inventory expected to sell within 90 days, a short-term loan is more appropriate than a 10-year loan. Conversely, long-term loans are better suited for capital-intensive projects that may take time to yield returns.
Business Credit History
Your business’s creditworthiness plays a crucial role in financing options. Assess your credit history realistically:
- If you’re a new business owner or have fair to poor credit, consider short-term loans, merchant cash advances, or accounts receivable financing.
- If you have a strong credit profile, options like lines of credit, term loans, or SBA loans might be more suitable.
Timing Requirements
If speed is your top priority for obtaining a loan, consider the time it takes for application and funding:
- Traditional lenders, such as banks and credit unions, often have lengthy application and approval processes.
- Alternative lenders offering online small business funding can provide much faster approvals. For example, at iBusinessLender, you might receive the necessary capital as soon as the same day of approval in some cases.
SECTION 3
What Factors Do Lenders Review for Approval?
At iBusinessLender, we don’t require specific collateral for a loan. Instead, we evaluate the following factors:
Credit Score
When you apply for a small business loan, your credit score plays a crucial role in determining eligibility. A credit score in the Good, Very Good, or Excellent range (670-800) will help you qualify for the best financing rates and terms. However, there are still options for business owners with Poor to Fair credit (580-660). At iBusinessLender, we offer financing for credit scores starting in the 500s.
Time in Business
The length of time your business has been operational is another key factor for loan approval. While traditional lenders often prefer businesses that have been running for a few years, iBusinessLender provides financing for businesses that have been operational for as little as 4 months.
Cash Flow
Lenders assess your cash flow, including average monthly sales, expenses, and revenue, to determine the appropriate loan amount and terms. At iBusinessLender, we review your four most recent bank statements to evaluate your cash flow and ensure you qualify for the best possible financing.
Debt Load
Existing debt obligations are also considered when evaluating your loan application. Lenders want to ensure you can manage additional debt and repay the loan. At iBusinessLender, we carefully assess your debt load to provide financing options that suit your financial situation.
SECTION 4
Why iBusinessLender?
You have a wealth of knowledge about building a successful small business. However, navigating different lending products without a finance background can be overwhelming and time-consuming.
At iBusinessLender, we understand that your priority is running your business, not dealing with complicated financing options. That’s why we simplify the process for you. Through our direct lending options, we provide expert guidance and help you compare loan offers, allowing you to quickly access the capital you need to grow.
Easy Process
With a single, no-cost application, you can receive multiple financing offers. Our online application takes just a few minutes to complete, and you can see what you qualify for without affecting your credit score.
Fast Approvals and Funding
At iBusinessLender, 4 out of 5 applications are approved and funded. In some cases, funds can be deposited into your bank account the same day as approval.
Expert Guidance
An iBusinessLender Business Advisor will contact you to review your offers, guide you through the funding process, and answer any questions. Our experienced team is dedicated to helping your business succeed.
SECTION 5
Business Loan FAQ
Applying for a business loan on our website is quick and easy. In just a few minutes, you can complete the process by following these steps:
- Provide Business Information: Answer some basic questions about your business.
- Connect Your Bank Account: Securely link your company’s bank account so we can review your most recent banking activity, including revenue, debits, and cash flow.
Minimum Requirements:
- At least 4 months in business
- Minimum monthly revenue of $10,000
- FICO score of 500 or higher
We provide a variety of financing options tailored to meet the specific needs of your business. Depending on what suits your business best, you may qualify for products such as:
- Short-term loans
- Merchant cash advances
- Business term loans
- Equipment financing
- Invoice factoring
- Business lines of credit
- SBA loans
Based on the financial health and qualifications of your business, our rates for some financing products can start as low as 6%. For a business line of credit, rates can be as low as 3%-4% if you repay the borrowed funds within the first few weeks.
The amount you can borrow depends on factors such as your credit score, cash flow, revenue, and existing debt. We are committed to offering the maximum amount you qualify for without jeopardizing your business’s financial health. Our lenders ensure that the credit extended is within your capacity to manage responsibly.
Typically, you can expect a funding offer between 50% and 100% of your business’s average monthly revenue. For instance, if your monthly revenue averages $10,000, you could anticipate a financing offer ranging from $5,000 to $10,000.
Discover your approval status within hours and select the offer that best suits your needs. You could have the funds deposited in your account within a day.
Although we do not offer loans for early-stage startups, we do provide funding for businesses that have been in operation for at least 4 months and meet our qualification criteria.
We offer business financing to borrowers with credit scores starting in the 500s, provided they meet our minimum requirements for time in business and revenue. Available products include short-term loans and merchant cash advances. Additionally, business lines of credit may be available to qualifying borrowers with a credit score of at least 560.
