Cash flow and capital are the lifeblood of any small business, which is why business credit can be such a valuable resource to help you grow and scale your business. Unfortunately though, for many small businesses owners, it often seems like gaining approval for small business credit and loans is no easy feat.
Of the various types of small business loans, some of the most typical for small business owners are SBA loans, short-term loans, and business lines of credit.
- SBA loans are large loans best for financing major business endeavors, and average about $100k.1
- Short-term loans are more accessible than longer-term loans, and better for smaller one-off endeavors for your business. The average small business loan amount for short-term loans is around $20,000.2
- Business lines of credit can either offer small or very large amounts of funding. The average small business loan amount for shorter-term lines of credit is around $22,000.2
Lenders have a variety of requirements.3 They want to see things like a working business plan, annual revenue, cash flow, time in business, type of industry, and more in order to qualify you.