Business loans: plain-English answers

Business loans are the traditional path — the cheapest capital, the slowest process, and the tightest credit box. Here's what actually qualifies, how long it really takes, and when it beats an MCA or line of credit.

What is a business loan?

A lump-sum advance repaid on a fixed schedule with interest — the traditional, cheapest path to capital.

Can I get a business loan with bad credit?

Yes — through revenue-based lenders, MCAs, and secured products. Bank and SBA doors close under ~650 FICO.

SBA loan vs conventional bank loan: which is right?

SBA is cheaper and longer-term but slow. Conventional is faster if your bank already knows you.

How long does a business loan actually take?

MCA: often a few days. Online term loan: about a week. Bank: 2–6 weeks. SBA 7(a): 45–90 days.

How to choose a business loan

Start with what the money is for and how fast it pays back. A term loan suits a one-time purchase or expansion that earns money over several years. SBA loans are usually the cheapest, but take the longest and need the strongest file. Online term loans are faster to get and cost more.

Lenders mainly look at three things: monthly revenue in your bank statements, time in business, and credit. Through Outset Funding you need $10,000+ in monthly revenue and 6+ months in business; rates, terms and approval are set by the lender.

If your credit is weak, read the bad-credit guide first. If you are comparing a loan with a merchant cash advance, run both through the calculators before you sign.