How to Get a Small Business Loan in 2025 – Step-by-Step Guide

Getting a Small Business Loan: What You Need to Know

Securing a small business loan can be a game-changer for growth, but understanding lender requirements and loan types is key to increasing your chances of approval.

Whether you need funding for working capital, equipment purchases, or expansion, a clear strategy will help you secure financing faster.

This guide covers:

• How to qualify for a small business loan (credit score, revenue, and business history)
• The best loan types for your business needs
• What documents to prepare for a fast approval
• How to avoid common mistakes that delay funding
• How SCG Funding helps businesses access the best financing options

📌 Need business financing now? Apply for funding today

Step 1: Identify Your Business Funding Needs

Before applying, ask yourself: Why do I need this funding? Choosing the right financing depends on your specific business goals.

Common Reasons for Small Business Loans:

• Working Capital – Cover payroll, rent, and operating expenses
• Equipment Financing – Purchase or lease essential equipment
• Expansion – Open a new location or increase marketing efforts
• Inventory Purchases – Stock up ahead of seasonal demand
• Startup Costs – Fund business growth before revenue stabilizes

📌 Not sure what type of funding fits your needs? Speak with an SCG Funding expert

Step 2: Choose the Right Type of Business Funding

Your loan type depends on how much funding you need, how soon you need it, and your financial standing.

Best Funding Options for Small Businesses

✅ Working Capital Loans – Best for short-term cash flow needs with fixed payments over 6–36 months. Learn more about working capital loans.

✅ Equipment Financing – Use the loan to purchase machinery, vehicles, or tools. The equipment itself serves as collateral. Find out more about equipment financing.

✅ Startup Business Loans – Credit-based loans for new businesses with little revenue history.

SCG Funding helps businesses secure funding from $10K to $1M with fast approvals and flexible terms.

Step 3: Check Your Loan Eligibility

Each lender evaluates different factors when deciding how much you qualify for.

1️⃣ Credit Score Requirements

• 500+ – May qualify for revenue-based financing

📌 Struggling with credit? SCG offers a credit repair program to help businesses boost their scores and secure better funding.

2️⃣ Business Age Requirements

• 6+ months – Minimum requirement for most business loans
• 2+ years – Preferred for larger loan amounts

3️⃣ Revenue Requirements

• $10K+ per month – Minimum required for most business loans
• Lower revenue? Consider equipment financing or a startup loan

📌 Need funding but not sure if you qualify? See your funding options

Step 4: Gather Required Documents

To speed up the approval process, prepare these documents in advance:

✅ Last 4 months of business bank statements ✅ Driver’s license (for identity verification) ✅ Voided check (for funding disbursement) ✅ Personal tax returns (sometimes required for high funding amounts)

📌 Related: What Lenders Look for in Business Loan Applications

Step 5: Submit Your Loan Application

It’s time to apply. Here’s what to expect:

1️⃣ Online Application – Quick and hassle-free with SCG Funding 2️⃣ Underwriting Process – Lenders review bank statements, revenue, and creditworthiness 3️⃣ Approval & Funding – If approved, funds can be disbursed in as little as 24–48 hours

📌 Need fast business financing? Apply now

Step 6: Review Loan Terms & Accept Funds

• Accept loan terms and have funding on the way!

📌 Not sure if a loan is the right fit? SCG Funding provides personalized guidance to help you make an informed decision.

📌 Learn more: Understanding Business Loan Terms

Final Thoughts: Get the Right Business Loan Faster with SCG Funding

Securing a small business loan doesn’t have to be complicated. By choosing the right financing, preparing documents in advance, and applying with a funding partner that understands your needs, you can access capital quickly and efficiently.

Why Businesses Choose SCG Funding:

• Business loans up to $1M with flexible terms
• Fast approvals & funding in 24–48 hours
• Multiple lending options – term loans, equipment financing, startup funding
• Bad credit? No problem! We help business owners qualify for better financing

📌 Ready to get started? Apply for a small business loan today

FAQ: Common Questions About Business Loans

How long does it take to get approved for a small business loan?

With SCG, approval can take as little as 24–48 hours, depending on the loan type.

What credit score do I need to get a business loan?

Most lenders prefer 600+, but SCG works with businesses with scores as low as 500 through revenue-based loans.

📌 Need funding now? Apply Here