Type of Lender and Loan Qualifications - The answer to your question depends on several factors, such as the type of loan, the lender, and your qualifications. Generally speaking, the faster you need the loan, the more expensive it will be.
According to some sources, the average time to get a business loan can range from 15 minutes to several months.
Here are some examples of different loan types and their approval times:
- Online lenders: These are alternative lenders that offer fast and easy business loans, often with less stringent requirements than banks. You can apply online and get approved and funded within minutes, hours, or days. For example, Kabbage can approve you for a line of credit in as little as 15 minutes, while Lendio can match you with over 75 lenders and get you funded in as little as 72 hours.
- Traditional banks: These are the most common sources of business loans, but they also have the longest and most complicated application process. You may have to submit a lot of paperwork, meet high standards, and wait for weeks or months to get approved and receive the loan. For example, a commercial real estate loan from a bank can take two months or more to close.
- SBA loans: These are loans backed by the Small Business Administration, a government agency that supports small businesses. SBA loans have low interest rates and long repayment terms, but they also have strict eligibility criteria and a lengthy approval process. Getting an SBA loan can take two to three months from application to closing.
As you can see, there is no definitive answer to how long it takes to get a business loan. It depends on your specific situation and needs.
However, you can improve your chances of getting approved faster by following some strategies, such as:
- Checking and strengthening your credit score
- Understanding the loan requirements
- Assessing your debt-to-income ratio
- Preparing the necessary documentation
- Comparing different lenders and loan options
I hope this information helps you find the best business loan for your needs. If you have any other questions, feel free to ask me. 😊