Determine your business loan purpose (working capital, equipment, expansion, refinance)
Choose the loan type (term loan, line of credit, SBA loan, equipment financing, invoice financing, merchant cash advance)
Check your eligibility requirements (time in business, industry, revenue, credit)
Review your personal and business credit reports and scores
Prepare financial documents (business tax returns, profit and loss statements, balance sheets, bank statements)
Gather business details (legal name, ownership structure, business plan, use of funds, revenue projections)
Calculate the amount you need and the repayment terms you can afford
Organize collateral information (equipment, real estate, inventory, accounts receivable)
Choose lenders (banks, credit unions, online lenders, SBA lenders, microlenders)
Compare offers (APR/interest rate, term length, fees, repayment schedule, collateral requirements)
Request prequalification or preapproval when available
Complete the application with accurate information
Submit required documentation and respond to lender requests promptly
Review the loan agreement carefully (interest, fees, covenants, prepayment penalties, personal guarantee terms)
Provide additional verification if requested (proof of income, business licenses, contracts, invoices)
Accept the offer and complete underwriting requirements
Receive funds and use them only for the approved purpose
Set up repayment (bank autopay, budgeting for scheduled payments)
Keep records for lender compliance and future renewals or refinancing