Calculate Business Loan Payments
Estimate monthly payments for SBA loans, term loans, and business lines of credit.
Business Loan Options
SBA 7(a): Best rates (6-9%), longest terms (10-25 years), but slow approval (30-90 days) and extensive paperwork. Best for established businesses. Term loans: Fixed payments, 1-7 year terms, 7-15% rates. Faster approval. Lines of credit: Draw and repay as needed, interest-only payments, 8-18% rates. Best for cash flow management. Equipment financing: The equipment serves as collateral, 6-12% rates, term matches equipment useful life.
Qualifying for a Business Loan
Lenders evaluate: Credit score (680+ for SBA, 600+ for alternative lenders), time in business (2+ years for SBA, 6+ months for alternatives), annual revenue (varies by loan size), and cash flow (debt service coverage ratio of 1.25x or higher). Prepare financial statements, tax returns, and a business plan before applying.
The SBA 7(a) loan program is the single best financing option for small businesses — rates 2-3% below commercial loans with terms 2-3x longer. The catch: processing takes 30-90 days and requires extensive documentation. Start the application process 3-6 months before you need the funds.
