Small business owners need capital to grow — but navigating the world of business loans can be overwhelming. This comprehensive guide covers every major business loan type available in 2026, who qualifies, and how to get funded fast.
Velho Capital connects small businesses with 75+ lenders in 60 seconds. Business funding from $10,000 to $5,000,000. All business types and credit profiles considered. No hard credit pull to check your options.
Types of Small Business Loans in 2026
SBA Loans
Government-backed loans with the lowest interest rates available to small businesses. Ideal for established businesses with 2+ years of history and strong credit.
- Amount: $50,000 – $5,000,000
- Rates: Prime + 2.75% (currently ~11%)
- Term: Up to 25 years
- Credit: 680+ recommended
- Funding time: 30–90 days
Business Line of Credit
A revolving credit facility you draw from as needed and only pay interest on what you use. Perfect for managing cash flow and unexpected expenses.
- Amount: $10,000 – $250,000
- Rates: 10%–35% APR
- Term: Revolving (12–24 month draw period)
- Credit: 600+ recommended
- Funding time: 1–7 days
Merchant Cash Advance
Not technically a loan — a lender purchases a portion of your future revenue at a discount. Repayment is a percentage of daily sales. Expensive but fast.
- Amount: $5,000 – $500,000
- Factor rate: 1.2–1.5x (20%–50% effective rate)
- Repayment: % of daily credit card sales
- Credit: 500+ (based on revenue)
- Funding time: 24–72 hours
Equipment Financing
Loans specifically for purchasing business equipment. The equipment itself serves as collateral, making approval easier even with bad credit.
- Amount: Up to 100% of equipment value
- Rates: 8%–30% APR
- Term: Matches equipment useful life (2–10 years)
- Credit: 580+ recommended
- Funding time: 2–7 days
Working Capital Loans
Short-term loans designed to cover day-to-day operational expenses like payroll, rent, and inventory. Fast approval, shorter terms.
- Amount: $10,000 – $500,000
- Rates: 15%–65% APR
- Term: 3–24 months
- Credit: 550+ acceptable
- Funding time: 1–5 days
Business Loan Requirements in 2026
| Requirement | Minimum (Online Lenders) | Preferred (SBA/Banks) |
|---|---|---|
| Credit score | 520+ | 680+ |
| Time in business | 6 months | 2+ years |
| Annual revenue | $50,000+ | $250,000+ |
| Monthly revenue | $4,000+ | $20,000+ |
| Business type | Most business types | Profitable, stable |
How to Qualify for a Business Loan with Bad Credit
A low personal credit score doesn't automatically disqualify you from business funding. Lenders consider multiple factors:
- Business revenue — consistent monthly cash flow is often more important than credit
- Time in business — 6+ months significantly expands your options
- Business credit score — separate from personal credit; build it by paying vendors on time
- Collateral — equipment, real estate, or accounts receivable can offset bad personal credit
- Industry type — some industries (restaurants, retail) get better terms than others
Get Business Funding in 60 Seconds
Compare 75+ business lenders simultaneously. $10,000 to $5,000,000. All credit profiles considered. No hard credit pull.
Check Business Loan Options →Frequently Asked Questions
Can an LLC get a business loan?
Yes. LLCs are one of the most common business structures for business loans. Most lenders will also look at the personal credit of the LLC's owners (personal guarantee). Single-member LLCs often qualify for loans as small as $10,000.
Can a startup get a business loan?
Startups with less than 6 months of operating history have limited options. The best paths for new businesses are: SBA microloan program ($500–$50,000), equipment financing, business credit cards, or revenue-based financing once you have 3+ months of bank statements.
What's the easiest business loan to get approved for?
Merchant cash advances and invoice factoring have the lowest credit requirements (500+) and fastest approval. Business lines of credit from online lenders are also relatively easy to qualify for with 600+ credit and 6+ months in business.
Do business loans require collateral?
Many online business loans are unsecured (no collateral required). SBA loans and bank loans typically require collateral for amounts over $25,000. Equipment financing uses the equipment itself as collateral.