How Do You Get a Small Business Loan?

Just about every small business has been there: money is short to cover certain expenses that need to be paid off over the short term.

The traditional way to go about this dilemma is to apply for a loan at the local bank. Unfortunately, many small businesses owners discover that this channel of funding doesn’t always pan out the way they may have expected or hoped. In fact, the majority of small business loan applications wind up being turned down for a traditional loan ever since the economic crisis hit the US in 2008.

Getting A Small Business Loan: What You Need To Know

So, how do you get a small business loan?

Over the past few years, more and more financial technology companies have been springing up, offering small business owners with fast cash loan advances with minimal paperwork and lending criteria to meet.

Here are a few examples of the types of loan options available outside of the bank realm:

Business Cash Advance

This funding option provides borrowers with a lump sum of money, after which the lender is paid back by allowing the lender to take a percentage of daily credit card sales until the money is paid back in full.

If your business makes the majority of its sales through credit cards, you can use a business cash advance as a financing tool to help manage your cash flow, buy inventory, meet unexpected expenses and more.


  • Bad credit is OK
  • Fast application process
  • No restriction on how to use the money
  • Immediate access to cash


  • Higher interest rates compared to traditional loans

Invoice Financing

To help manage the time you wait between invoicing your customers and receiving full payment for them, an invoice financing program can be a real lifesaver. With this financing, your lender will approve you for a certain amount of money, after which about 85 percent will be given.

The remainder is kept by the lender in a separate account from which the lender takes his or her fees. After you finally get paid from your customers, the rest of the money left over is given to you.


  • Quick access to money
  • Invoices used as collateral
  • Bad credit is OK


  • Higher interest rates compared to traditional financing
  • You may owe more money if the customer takes a long time to pay you

Equipment Financing

Buying equipment for your business is essential to keep things running smoothly. Whether you’re a florist who needs cash registers, or a baker who needs ovens, this equipment represents a vital component of your business. But if money is short, you can always look to equipment financing to help pay for the equipment. Just like a car loan, you’re given a lump sum of money to pay for your equipment. Once the loan amount is fully paid back – along with the lender’s fees – the equipment is considered all yours.


  • Fast access to cash
  • Quick application
  • Equipment acts as collateral


  • Equipment could be obsolete once it’s totally paid off
  • May tie up your credit
  • May require additional expenses, such as repairs and maintenance

Business Line of Credit

Having access to cash whenever you need it can be extremely helpful when urgent expenses need to be covered. With a business line of credit, a lender gives you a lump sum of money deposited into your account where you can withdraw as much or as little as you need, whenever you need it. The best time to apply for the financial program is before it’s even required. That’s because it will always be there on the back-burner when the need arises.


  • Interest is only paid on the portion withdrawn
  • Money is always there when you need it
  • Money can be used for all sorts of business uses
  • Bad credit is OK


  • Collateral may be required

Related: The Difference Between A Small Business Loan And Line Of Credit

Applying For Online Alternative Loan Programs

For all these loans, the application process is easy. Simply go online on the lender’s website, enter a few pieces of information, and submit it. You can literally complete this application in a couple of minutes and expect to hear about whether or not you’re approved within 48 hours. After that, the cash is deposited into your account almost immediately!

At Credibly, we believe that all small businesses have the right to get the help they need to get their business off the ground and running with no hiccups. And that means providing them with access to funding solutions that are easy to apply and get approved for.

To pre-qualify now, submit our online request form – it’s free and easy and won’t hurt your credit. If you have questions, contact us and our team would be happy to help you out.