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Money Central

The essential guide

What is business loan?

Business financing should match the use of funds and the cash flow expected to repay it. Compare speed and convenience against cost, collateral, and personal-guarantee requirements.

Quick path

Explore business loans

How it works

The basic idea

Working capital, equipment, and expansion funding from lenders who work with businesses your size. Providers evaluate eligibility and set their own terms. Your goal is to compare equivalent offers, understand the complete cost, and choose only what fits comfortably within your budget.

What to compare

  • APR or equivalent total cost
  • Payment frequency
  • Collateral and personal guarantee
  • Prepayment and origination fees

When it may make sense

  • Funds have a defined revenue-producing use
  • Cash flow supports repayment in a slow month
  • The term matches the asset or project

Risks and watchouts

  • Daily payments that strain cash flow
  • Unclear factor rates
  • Borrowing to cover an unresolved operating loss

What to prepare

  • Business and personal tax returns
  • Bank statements
  • Profit-and-loss statement
  • Use-of-funds plan

Common questions

How long do I need to be in business?

Many lenders want at least six months of operating history and consistent revenue. There are options under that, but they cost more.

Will they check my personal credit?

For most small business lending, yes. Personal credit and often a personal guarantee are standard until the business has substantial history of its own.

What about an SBA loan?

SBA loans usually carry the best rates and the longest timelines. They are worth pursuing when you can wait weeks rather than days for funding.