Table of Contents
- Introduction
- SBA Loan Options
- SBA 7(a) Loans
- SBA 504 Loans
- SBA Microloans
- Traditional Bank Loans
- Term Loans
- Business Lines of Credit
- Online Lenders
- Short-Term Loans
- Merchant Cash Advances
- Startup Financing Options
- Business Credit Cards
- Equipment Financing
- Loan Comparison Chart
- Interest Rates
- Loan Amounts
- Repayment Terms
- How to Qualify
- Credit Score Requirements
- Time in Business
- Revenue Requirements
- Application Process
- Required Documents
- Approval Timeline
- Alternative Funding Sources
- Frequently Asked Questions
- Conclusion
Introduction
Access to capital remains the #1 challenge for 43% of small businesses. This 2024 guide compares all major financing options – from government-backed SBA loans to fast online funding – to help you secure the right business loan.
SBA Loan Options
SBA 7(a) Loans
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Amount: Up to $5 million
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Rate: Prime + 2.25%-4.75%
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Term: Up to 25 years
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Best For: Established businesses needing long-term capital
SBA 504 Loans
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Amount: Up to $5.5 million
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Rate: Fixed below-market rates
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Term: 10-25 years
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Best For: Real estate/equipment purchases
Traditional Bank Loans
Business Term Loans
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Amount: $25,000-$500,000
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Rate: 6-30% APR
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Term: 1-5 years
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Requirements: 680+ credit score, 2+ years in business
Lines of Credit
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Amount: $10,000-$250,000
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Rate: 8-25% APR
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Draw Period: 1-3 years
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Best For: Seasonal cash flow needs
Online Lenders
| Lender | Loan Type | Amount | Speed |
|---|---|---|---|
| Fundbox | Line of Credit | Up to $150K | 1 day |
| OnDeck | Term Loan | Up to $250K | 1-3 days |
| Kabbage | Flex Line | Up to $250K | Same day |
Startup Financing
Options for New Businesses
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Business Credit Cards: 0% intro APR offers
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Equipment Financing: Up to 100% of equipment value
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Rollover for Business Startups (ROBS): Use 401(k) funds
Minimum Requirements
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6+ months in business
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$50K+ annual revenue
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600+ personal credit score
Loan Comparison
| Loan Type | Amount | Rate | Term | Speed |
|---|---|---|---|---|
| SBA 7(a) | $50K-$5M | 6-13% | 10-25y | 30-90d |
| Bank Term | $25K-$500K | 6-30% | 1-5y | 1-4w |
| Online | $5K-$500K | 8-99% | 3m-5y | 1-3d |
How to Qualify
Credit Requirements
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SBA Loans: 680+
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Bank Loans: 680+
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Online Lenders: 600+
Time in Business
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SBA/Bank: 2+ years
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Online: 6+ months
Revenue Needs
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Minimum $50K-$100K annual revenue
Application Process
Documents Needed
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Business tax returns (2 years)
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Profit & loss statements
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Business bank statements
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Personal financial statement
Approval Timeline
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SBA: 30-90 days
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Banks: 1-4 weeks
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Online: 1-3 days
Conclusion
While SBA loans offer the best rates (6-13%), online lenders provide the fastest funding (1-3 days). Established businesses should prioritize SBA/bank options, while startups may need to begin with online lenders or credit cards before qualifying for traditional financing.
