To secure a business loan, first assess your credit score and financial health. Prepare essential documents like tax returns, balance sheets, and cash flow statements. Choose a loan type aligned with your needs—such as SBA loans, bank loans, or alternative lenders—and submit a complete application to a reputable lender. Lenders prioritize businesses with stable revenue, collateral, and clear repayment plans.

The process hinges on meeting lender criteria, which vary by institution but commonly include a minimum credit score (e.g., 650 for SBA loans), proof of revenue (typically 12 months of statements), and collateral for larger loans. Data from the U.S. Small Business Administration (SBA) shows 64.5% of SBA 7(a) loans were approved in 2023, with average approval rates for traditional bank loans at 40-60%. Collateral requirements affect approval; 80% of loans exceeding $100,000 demand assets like real estate or equipment. Financial documentation is critical: businesses with consistent cash flow see 30% higher approval rates than those without, per Federal Reserve studies. Alternative lenders, such as fintech platforms, approval times average 7-14 days versus 30-60 days for banks. However, higher interest rates (8-24%) often offset faster processing. Businesses should compare terms, including interest rates and fees, to avoid overborrowing. Ultimately, alignment between loan purpose, repayment capacity, and lender criteria determines success.