What Is Small Business Loan?

Loans given to small businesses for many objectives by a lender are usually called small business loans. Small business loans may have minimum requirements, allowing the small businesses to get the funding. A small business loan may also offer other incentives that can reduce the expenses for the business.

What Small Business Loans Can Do?

Having limited funding sources, it is difficult for small business owners to run their business successfully. However financially tough situations can be controlled if there is access to capital. With the right amount of funding, a small business can be successful and transformed into a large one.

How to Take Out Small Business Loan?

Loans are frequently available to small businesses that have good credit rating. Private lenders are the excellent financing option for this type of business financing due to the fact that the interest rates are normally lower with private lenders as compared to using other financing options. Businesses that can’t get a business funding from conventional lenders can seek the help of the Small Business Administration (SBA). The SBA works closely with the small business owners to help them get the much needed funding. The loans are guaranteed by the SBA, and the lenders are especially interested in helping small businesses. The SBA also provides counseling to small businesses to help them in developing their businesses.

How Small Business Loans Work?

When trying to get a small business loan, entrepreneurs may question, “How do small business loans work?” Even though the entrepreneur may not have small business loan experience, they ought to be well organized to answer questions regarding their business.

At the outset, business owners need to settle on the type of financing they are looking for. One type of small business funding is an asset-based loan. With asset-based loan, the terms and the amount of loan are primarily based on the business owner’s credit and resources. These loans use assets and personal credit ratings to decide the eligibility and lending terms. People who have low credit scores can also make the grade if they have been in business for many years and have a history of constant earnings. After the sort of loan is determined, businesses have to develop a strategic plan.

In business strategy plan, the business’ history and background have to be mentioned. Other financials for example P&L sheets, balance sheets and cash flow statements should be included. Lenders will go through this information to determine if a business is able to pay back the loan. In case a lender determines that a business is qualified for a small business loan, they will determine the rate of interest and other lending terms based on the provided information.

Why Small Business Loan Can Make A Difference?

This may not be the good time to go for small business loan from traditional sources, but why would you need it predominantly?

For the most part, you may need to expand your business or want to improve working capital, strengthen your cash flow and buying equipment or inventory. In a nutshell, locating the right source of small business loans can mean the difference between failure and success.

What Are The Requirements For Small Business Loan? 

Credit History

Unless you’ve a money-making, properly-established business, your personal credit history can play the game in the absence of a business credit history. Therefore, before applying for small business loans, confirm your credit rating so that you know where you stand.

Business Plan

Your ability to pay back the borrowed amount will probably based on your business success, so the lenders wish to see your marketing strategy and business plan. Your business plan needs to be a detailed strategic paper which includes the competitive analysis, marketing plan and well-researched statistics on cost factors and price factors.

Balance Sheet

Lenders also want to see a list of the business’ resources/liabilities so they can come to a decision on how well-equipped the business is and whether it’s over-extended financially.

Cash Flow Projections

A balance sheet is the same as financial picture of your business, however a cash flow statement is more active picture of whether a business is developing or declining.

Resource Management

The information of how your business process its payables indicate the lender that you are well-prepared to make effective use of your resources.


Most of the lenders will look for business assets that they can claim if you fail to pay back the borrowed amount. But there are some lenders like Merchant Advisors that provides loan without the need of collateral. So why risking your valuable resource, when you can get the funding without pledging anything!

A successful business requires more than a superb product or service and hard work. It additionally requires capital to cover the operational expenses. If you’re among 30 million US small businesses and applied for a small business loan from your traditional lender without proper planning and paperwork and have faced rejection, and thinking what you can do next to turn that rejection into approval, small business loan from Merchant Advisors is the solution!

Benefits of Small Business Loan

Simple And Easy Application

With online loan application, your business can qualify for funding within minutes and that too without any problem. After submitting the loan application, the lender will evaluate the information regarding you and your business and will approve you in couple of hours.

Affordable Rates

The terms on small business loans are reasonable and within your means. Plus the interest rate is also low without the hassle of bank loans where you have to wait weeks or months for the approval and the rates are also high.

Early Repayment Savings

You only need to pay interest on the unpaid balance every day for most of the business financing programs!

No Upfront Fees

There are no hidden charges or upfront fees to apply for small business loans.  Most of business financing programs at Merchant Advisors are tax deductible.

Refinancing Benefits

You can apply for refinancing after 50% of the loan amount is repaid. And with refinancing, you can get the benefit of higher loan amount with low rates.

No Collateral Requirement

There is no need to pledge any type of collateral when getting funding from Merchant Advisors. You can get fast approvals without the need of personal guarantee.

Getting small business loan may be confusing for business owners when many business financing options are available in the market. Small business loans are the most favored funding program for small businesses just because of they are simple to apply and easy to pay off. Merchant Advisors provide a rationalized business loan application process with less paperwork and an extensive variety of small business loan programs where we personalize a plan for your business that gets you the financing you require at reasonable rate.