How to Get a $10k Business Loan 

Identifying all of the key focal points you need to secure $10k in funding can be an extensive process.  

That’s why we’ve done it for you.  

In this guide, we cover small business loan requirements, types of financing to consider, and the easiest versus the hardest loan types to secure.  

If you need help building your credit to fund your business with ease, start here with eCredable. 

How to Get a 10k Business Loan 

Securing a $10,000 business loan is not as difficult as it sounds once the approach is broken down.  

Here are the necessary steps to getting a 10k business loan as a small business.  

1. Check Your Credit 

No small business starts off with business credit. 

When you’re first starting out, most lenders are going to consider personal credit. They won't seriously look at business credit until later.  

The stronger your credit score, the more likely a lender will consider you to be a reliable borrower. This applies later on when you’re just leveraging business credit as well. 

That being said, the challenge can be in figuring out exactly which scores you need in order to qualify. 

What FICO Score are lenders going to require you to have for business loans? 

The general rule of thumb is to have a score of at least 680. If you start getting into the mid-700s, your chances of being approved for an unsecured loan grow substantially.  

It’s true that some lenders will accept less than 680. However, you may see less desirable terms or more stringent qualification requirements.  

If you can grow your personal credit to 680 and above, you’re doing well.  

If you can build your business credit for further credit approval, you’re in better shape! 

2. Identify the Right Type of Financing 

As a small business, you have multiple financing opportunities at your disposal.  

Finding ones that you can easily qualify for is the key to securing the 10k you need quickly.  

What are your options if you want a small business loan? If you’re looking to finance your small business, consider these funding sources: 

• Business Credit Cards: Getting a business credit card is much easier than most think. Do you have a strong personal credit score and some business revenue? If so, you can probably get a $10,000 business credit card line per card. Just make sure you’re choosing cards that support your small business, not ones with costly terms. 
• Equipment Financing: Equipment financing is a strong choice because it comes with inherent collateral. When you finance equipment and fail to pay your equipment loan, they can take the equipment from you and sell it. This makes lenders more likely to extend a loan amount of $10,000 to you. On that note, it is possible to find no personal guarantee business loans, but they’re not as easy to access.  
• Invoice Financing: Do you operate a business where you invoice your customers? Invoice financing is a type of financing in which you use unpaid invoices as your collateral. What you receive depends on the size of your outstanding invoices. 
• Auto Loans: Does your small business require a commercial vehicle? Auto loans are another financing option to help you get your business up and running. As with the previous mentions, this secured loan is generally much easier to get. 

3. Research Needed Documentation 

Are you hoping for a speedier qualification and approval process for a loan? It all depends on your level of preparedness.  

Planning ahead to ensure you have all the necessary documentation will streamline the process.  

If you have everything properly filed away, you’ll have an easy time getting all the proof a lender requests.  

Documentation that’s instrumental to the loan application process includes: 

• Proof of Revenue: Different lenders may have different requirements for proof of revenue. Check to see if your lender wants bank statements, profit and loss statements, or tax documents.  
• Articles of Incorporation: Articles of incorporation show lenders that your business is legitimate. Make sure to have these on hand when you apply for a business loan.  
• Licenses and Permits: Do you operate a business where you’re required to have licenses or permits? If so, lenders are likely going to ask you for these to check that your small business operations are legal.  
• Lender-Required Documentation: Some lenders have specific documentation they require you to submit. The Small Business Administration (SBA), for example, requires numerous forms. Be prepared to fill out additional documentation to get your funding. This applies to an SBA loan and any other loan options.  

4. Shop Around Lenders and Apply 

Don’t assume that you have to go with the first lender that you find.  

There are numerous online and in-person lender options out there for you to choose from.  

Take your time to shop around and see which lenders are the best fit for your funding needs.  

Consider loan types, qualification requirements, and loan terms. Also ask, how much of a business loan can you get? The more cash, the better. 

With careful research, you’ll find a lender that provides you with high funding and desirable loan terms. 

Typical Business Loan Requirements 

Business term loan requirements will vary from lender to lender. However, there are standard business loan requirements you should expect while comparing lenders.   

Typical business loan requirements encompass: 

• Time in Business: Lenders offering term loans will require you to be in business for a specific amount of time. Some lenders only approve businesses that have been operating for one year. Others might want two years or more for loans with a longer loan term or higher funding amounts.  
• Personal FICO Score: As we covered above, you’ll need a minimum credit score to qualify. This will vary depending on the lender you choose. However, poor credit typically won’t be accepted. 
• Bank Accounts: Do you currently have a business checking account? If not, you’ll need one. Lenders generally require you to have a business bank account to fund you.  
• Annual Revenue: If you don’t have strong business activity, you might not pay back your loan. This is why lenders establish annual revenue requirements. Know how much your business is bringing in and if this aligns with term loan lenders.  

Business Loans vs. Other Types of Financing 

Business loans are often desirable for businesses because they offer a lump-sum payment. Business owners can then pay back this sum over the course of a few years to a decade. It’s a solid source of financing that modern businesses rely on.  

But how do they compare with other types of business financing? 

We’ve already touched on some forms of business financing above. But if you’re looking to diversify funding sources, let’s take a look at a few more.  

• Business Line of Credit: A business line of credit helps you tap into short-term funding when you need it. You receive a flexible business loan, take what you need, and only pay interest on the amount that you take. You then have access to the full business line of credit once you’ve made a payment (in full). Otherwise, you’re paying a little back and replenishing just that amount. You can get these at a bank or credit union. 
• Credit Cards: Business credit cards need no introduction. You receive a credit limit, you pay monthly, and then you use your revolving loan amount again. These can be instrumental in financing your business and helping you build your business credit.  
• Merchant Cash Advance: Merchant cash advances are short-term, lump-sum business loans that you pay back with future credit or debit sales. They’re not typically at the top of the financing list for business owners. However, they are worth being aware of. 
• Crowdfunding (and Similar Forms of Investing): Going directly to investors for cash or otherwise fundraising it on your own can be another way to fund your business. There are numerous platforms that will allow you to make this happen.  
• Other funding types: Venture capital, angel investors, business grants, and other forms of funding can help small businesses grow too. 

Be open to several types of business financing so you can get the capital you need to scale. 

The Hardest Business Loans to Qualify For 

Some small business loans are harder to qualify for than others. This means there will be several hoops to jump through before (or if) you see your $10,000.  

Small Business Administration loans are among the most difficult loans to qualify for. While they’re designed for small businesses, the qualification process is rigorous. As mentioned above, they require you to fill out multiple forms along the way.  

If you do qualify, you may have to wait anywhere from 30 to 90 days. This isn’t ridiculously long to wait for small business loans. But it does mean that the Small Business Administration won’t be a source of rapid funding. 

Term loans and bank lines of credit are also quite difficult to qualify for. The requirements lenders have in place are stringent. This means that there’s no room for negotiation. If you have bad credit, you’ll need to boost it. 

Most often, lenders providing the above demand strong business activity and a history of timely payments. After all, they do shoulder the risk of losing their money should their investment not pan out. 

That doesn’t mean that you can’t get any of these small business loans. It just means that you’ll have to work a bit harder to make sure you’ll be seriously considered when you apply. 

The Easiest Business Loans to Qualify For 

On the opposite end of the spectrum, you have loan programs that are easy to qualify for. These loans will help you secure business funding fast when you need it most.  

Two examples of easy business loans (or more correctly, business financing) are merchant cash advances and online loans. We covered the former in the sections above.  

The latter simply refers to financing from lenders online that don’t have traditional brick-and-mortar bank branches. These private lenders are able to give you the funding you need without as many limitations. This is a notable advantage compared to a traditional lender.  

What’s important to know ahead of time about these loan types is that you pay for the convenience. The benefit of getting a merchant cash advance or a loan from an online lender is faster funding. They accept bad credit and everything else that normally bars you from loans. 

However, this comes at a cost when you opt for a merchant cash advance instead of a term loan. That cost for small businesses being: 

• Higher than average interest rates. These could put you in debt if you aren’t diligent about repayment.  
• More fees associated with your small business loan. These can eat into your business savings.  
• Contracts that may include sneaky terms like prepayment penalties.  
• Cash flow difficulties for business owners. Moreso in the case of a merchant cash advance. 
• And more 

Easier business loans can offer you the funding you need. However, your easy cash almost always comes with caveats. Carefully weigh the pros and cons of these loan types before you seek funding.  

Boost Your Business Credit with eCredable 

Do you have bad credit or no credit for your business? The only surefire way to secure funding with terms you can be satisfied with is by building business credit.  

While you could sign up for solutions like a business credit builder loan, one tool that will make it simpler is eCredable.  

eCredable is a credit-building subscription that reports subscription payments and third-party bills.  

Every time you make a payment for our Business Lift product, we report it to D&B, Equifax, and Experian.  

If you have other bills that aren’t getting reported, we can assist with that too! We help the average small business owner report third-party bills to Equifax Business and Creditsafe.  

Are you ready to tap into better funding opportunities? Build your business credit with eCredable.  

Sign up today to get started!