How to Apply for a Small Business Loan? A Simple Guide

Starting or expanding a small business? Puzzled about funding? If you don't have the luxury of investors backing your business, consider a small business loan. Here's a quick and friendly guide on how to get started.

Table of Contents FSB's SBA Loan

Key Takeaways

Understand the business financing available—such as SBA Loans, Business Lines of Credit, and Business Credit Cards—to find the best fit for your business needs.

Consider SBA Loans for long repayment terms and competitive rates, ideal for businesses with more risks.

Business Lines of Credit offer flexibility with no collateral required, suitable for managing short-term expenses.

Business Credit Cards are beneficial for accruing rewards on operational costs and are ideal for owners with good credit.

Seek guidance from a commercial lender to compare loan options and fully understand repayment terms and fees before committing.

Where to Begin with Business Loans?

Popular Business Loan Options

How Can You Apply?

Where to Begin with Business Loans?

Every business is unique, so there's no one-size-fits-all loan. But by understanding your options, you can find the one that fits just right.

Some of the most popular business loans are Term Loans, Small Business Administration (SBA) Loans, Business Lines of Credit, Farm Loans, and Business Credit Cards. Below, we'll break down what these loans do, their benefits, and how you can qualify.

Popular Business Loan Options

Explore key business loan options to find the best match for your financial needs and growth plans.

Term Loans

What are they? One of the most common loans used for business financing which provides upfront funding.
- - You repay it, with interest, over time.
Benefits: Often has high borrowing limits and is speedy to obtain.
Ideal for: Businesses with good credit, cash flow, and potential collateral.
- - Note: Loan amounts will vary between financial institutions, typically offering one of the highest dollar amounts of all small business loan options.

Small Business Administration (SBA) Loans

What are they? Government-backed loans available at many financial institutions.
Benefits: Long repayment terms (sometimes up to 25 years) with competitive rates.
Ideal for: Established businesses with good credit, clear business plans, and some equity investment.

Your SBA Preferred Lender

As an SBA Preferred Lender, FSB offers longer terms and in-house approvals to help you get financing faster.

Inquire About Business Financing

Business Lines of Credit

What are they? Think of it as a credit card for your business. You only pay interest on the amount you use.
Benefits: No collateral needed and extreme flexibility.
Ideal for: Businesses with reliable revenue and credit and those facing short-term expenses.

Business Credit Cards

What are they? Just like personal credit cards but for business expenses.
Benefits: Can accrue reward points used for cashback, travel, etc.
Ideal for: Businesses or owners with good credit and typical operational costs.

Explore FSB's Business Credit Cards

How Can You Apply For a SBA Loan?

Consider these steps before committing to a business loan to make sure you’re set up for financial success.

Take a Financial Snapshot: Review your financial situation thoroughly before making a move.
Explore Your Options: Loans aren’t one-size-fits-all. Interest rates, terms, and fees vary widely, so take time to compare what’s available.
Reach Out for Guidance: Don't journey alone - work with a commercial lender to find the most suitable funding option for your business.

Before signing on the dotted line, review your financials carefully. Loans are a commitment, and in the ups and downs of business, remember: you’ll be responsible for repayment no matter the circumstances.