Business Financing

Funding is essential to a small business's launch and growth. Learn about the many financing options available and what to consider to achieve optimal business success.

Frequently Asked Questions

  • What does a small business need to get a loan?

    Documentation and eligibility for small business loans depends on the lender and loan programs, which can each have specific requirements. For example, eligibility for Small Business Administration loans like 7(a) tends to depend on certain factors:


    • How a business earns income
    • How business ownership is structured
    • Where the business operates
    • Business size
    • Ability to repay the loan
    • Sound business purpose


    SBA loan criteria require that businesses must also be for-profit and located within the U.S. or its territories.

  • Are small business loans hard to get?

    Eligibility for small business loans can often be affected by both personal and business credit scores and other factors like lack of collateral and capital investment. However, if business owners are affected by bad credit, for example, there are certain loans can try to obtain including working capital loans from the likes PayPal, AmEx, and Square.

  • What is the limit for a small business loan?

    Maximum business loan amounts can vary by lender, but some can reach into the millions. For example, the SBA's 504 loan program has a threshold of $5 million max for major fixed asset purchases toward business growth and job creation.

  • What type of financing is best for a small business?

    There are several financing options available to small businesses, but it can sometimes depend on what phase your business in. Banks can be one of the best options if you qualify as they typically offer lower interest rates than other lenders. However, most banks may require a business to show signs of success before lending money as they want to make sure it gets a return on its investment. So bank loans might be more difficult to obtain for businesses just starting out. In such cases, options such as SBA loans, microloans, or even bootstrapping might be more ideal options.

Key Terms

business grant
Money for Nothing? Startup Small Business Grants
Business owner secures commercial loan from bank
What Are Commercial and Industrial (C&I) Loans?
minority business owner
Grant Opportunities for Minority-Owned Small Businesses
Business partners discuss a loan agreement with a lender
What Is a Business Loan Agreement?
Business owner talking on phone
Types of Loans for Minority-Owned Businesses
Crowd Sourcing you idea
Key Challenges and Drawbacks With Crowdfunding You Should Know
Balance Sheet
The Risks of Asset-Based Loans and How They Work
Business owner sorting through paperwork and financials
Understanding Business Profit vs. Cash Flow
When Does a Business Start?
How To Get a Loan for a Franchise
A carpenter uses a tablet.
How To Use Other People’s Money To Finance Your Small Business
Businesswoman holding blueprints in new office
The Benefits of a Corporate Credit Line to a Business
A man and a woman talk to a banker as papers are spread on a table between them.
7 Steps To Take When Getting a Business Loan From a Bank
Capital Investment
What Is Capital Investment?
Woman sits at desk in home looking at application in front of a laptop
How To Get Money To Start a Business
Man and woman working on a laptop at a coffee shop
How To Find Angel Investors
Business man with wings. Business concept Isometric 3d design vector illustration
The 7 Things Angel Investors Are Looking for in a Business
Young female artist in studio working on laptop
Challenges of Getting a Small Business Loan
Businessmen negotiating in meeting
What Is Equity Financing and Where Do You Find It?
a computer keyboard with debt, loan, and risk keys
What Is Debt Financing?
Angel Investor
The Pros and Cons of Angel Investors
Woman business owner speaks on phone with private lender while sitting at a desk with a notebook
Is Private Lender Financing Right for Your Small Business?
Small business owner doing finances
Pros and Cons of Debt Financing for Small Business Owners
Students working on a crowdfunded documentary film.
Top Crowdfunding Sites for Funding Your Film, Video, or Web Series
A group of people around a table with their hands together in the center
4 Reasons Crowdfunding Campaigns Fail And How To Avoid Them
A group of young professionals congregate around a desk and discuss something.
Understanding Fees on Crowdfunding Platforms
Couple entering credit card information at a computer
The Pros and Cons of Crowdfunding for Your Business
A person writes while sitting on a window seat.
Best Crowdfunding Platforms for Authors To Publish Books
Examples of crowdfunding
What Is Crowdfunding?
Millennial financial advisor talking to client
The Best Crowdfunding Blogs and Websites
A woman working in a workshop
The Documents Needed for Business Valuation Information
A woodworker plans their small business
What Is a Small Business Investment Company?
Loan principal
What Is a Loan Principal?
Close up woman using calculator and taking notes
What Is Lending?
Leverage in Business
What Is Leverage and How It Can Benefit Your Business?
Two people have a discussion.
Co-Signing Process for a Business Loan
Entrepreneur talking with lender about a new business loan
How to Present a Business Loan Proposal
Two employees hanging an open sign
What Is a Personal Guarantee for a Business Loan?
Florist holding an open sign.
What Is Personal Guarantee Insurance?
Personal Guarantee for Business Lease
Why You Need a Personal Guarantee for a Business Loan or Lease
investment in business
Is It Smart to Loan Your Business Money?
Businesswoman checking inventory
How Inventory Financing Works for Your Business
Barista pouring coffee
What Is an SBA 7(a) Loan?
Woman discussing a business loan with a bank lender.
4 C's of Credit Needed to Get a Business Loan
Saying No to Business Loans
Why Banks Say NO to Business Startup Loans
Business Licenses Information
Does Your Business Need a Business License?
Sources and Uses of Funds Statement
Here's How to Create a Sources and Uses of Funds Statement for Lenders
a businessman presenting papers to sign to a young man
Here Are Tips on How to Establish Business Credit as a Startup
Cheerful businessman working from home on phone
Loans for Veteran-Owned Businesses
real estate and property concept - close up of hands holding house or home model
Learn About Getting Financing With Real Estate Lines of Credit
Woman making a credit card payment in front of laptop
5 Easy Tips to Build Credit for Your Business
Small business owner building credit at laptop in cafe
Business Credit With No Personal Guarantee
A modern office design paid for with funds pulled from retained earnings.
Internal Sources of Business Capital Available Without Borrowing
Female small business owner taking inventory with digital tablet
The Best Ways to Find Alternative Financing for Your Business
Couple talking to loan officer
What Is a Small Business Loan Application?
Businesswoman presenting product at a meeting
The Basics of Venture Capital for Small Businesses
A person looks at a piece of paper.
Amortization Schedule: Understand Your Business Loan Repayment
Entrepreneurs discussing renovation of a new business office space.
What Is Startup Capital?
Businesswomen in office
How To Get a Loan To Start a Business
Woman talks on phone and looks at laptop in an office with a clothes rack behind her
5 Reasons You Might Want To Take Out a Business Loan
Two people looking at a computer
How To Apply for a Business Loan