Question 1

How do I know which type of business loan is right for me?

Accepted Answer

Start with two questions: how fast do you need the money, and what is it for? If you need cash this week, look at merchant cash advance, lines of credit, or equipment financing. If you can wait 4-12 weeks for the lowest rate, the SBA 7(a) program is almost always the answer. Use the decision tool above for a personalized recommendation, or call our team.

Question 2

What credit score do I need to qualify for small business funding?

Accepted Answer

It varies widely by product. SBA 7(a) loans typically require a personal FICO of 680 or higher. Working capital loans and lines of credit through online lenders accept scores starting at 600. Merchant cash advances and invoice factoring evaluate business cash flow more than personal credit and can fund with FICOs in the 500s.

Question 3

How long does it take to get a business loan?

Accepted Answer

Funding speed runs from 24 hours to 90+ days depending on the product. Merchant cash advances and invoice factoring fund in 24-72 hours. Working capital loans, lines of credit, and equipment financing typically fund in 1-7 business days. SBA loans take 30-90 days because of the government underwriting and documentation requirements.

Question 4

Is SmarterLends a lender?

Accepted Answer

No. SmarterLends is a discovery and matching platform. We help you understand your funding options, then connect you with vetted U.S. small business lenders. We do not make underwriting decisions or set rates. Specific approvals, rates, and terms are determined by the lender based on your application.

Question 5

Will checking my eligibility hurt my credit score?

Accepted Answer

No. The initial eligibility check is a soft credit pull — it does not impact your credit score. A hard inquiry only happens later, after you accept a specific lender's offer and choose to move forward with full application.

Question 6

What's the difference between an SBA 7(a) and a 504 loan?

Accepted Answer

Both are government-backed, but they fund different things. The 7(a) is the general-purpose program — working capital, refinance, partner buyout, real estate. The 504 is specifically for major fixed assets like commercial real estate or large equipment. 504 loans use a two-lender structure and typically have lower fixed rates for real estate.

Question 7

Can I get a business loan with bad credit?

Accepted Answer

Yes, but the product set narrows. Merchant cash advances, invoice factoring, and some equipment financing programs lend to owners with FICOs in the 500s by relying on business cash flow or collateral instead of personal credit. The cost is higher, so use these only when faster, cheaper options aren't available.

Question 8

Do I need collateral for a small business loan?

Accepted Answer

Not always. Working capital loans and lines of credit under $100K are typically unsecured (no specific collateral, but a personal guarantee). SBA 7(a) loans over $50K usually require collateral when available. Equipment financing is automatically collateralized by the equipment itself. Invoice factoring is secured by the invoices.

Small business funding, matched to your needs

Which funding fits your business?

Six funding products at a glance

Working Capital Loans

Business Lines of Credit

Equipment Financing

SBA Loans

Merchant Cash Advance

Invoice Factoring

Typical APR ranges

Funding by industry

Funding by state

Frequently asked questions

Ready to see what your business qualifies for?