Short, honest guides to help small businesses borrow well.
If your cash need is recurring — payroll, inventory, seasonal dips — a line of credit usually costs less over a year because you only pay for what you draw. If the need is a single, defined project with a known price tag, a term loan gives you the lowest predictable payment. Many small businesses end up carrying both: a term loan for the asset, a line for the rhythm of the month.
Bank deposits are the headline. Underwriters weigh average monthly revenue, deposit consistency, negative-day count, and existing daily or weekly debits far more heavily than a single credit score. Cleaning up overdrafts for 60 days before applying often moves your offer more than anything else you can do.
Have the last three to six months of business bank statements, a voided business check, your EIN, and a photo ID ready. Nothing is required to start an application — these come into play only once you're reviewing real offers.
Compare total payback, not just rate. Ask for the total dollar cost, the payment frequency, whether there is a prepayment discount, and whether any origination fee is deducted from the funded amount. A reputable partner will give you all four in writing before you sign.