Business loan requirements checker
Answer six quick questions and see which funding product types your answers typically fit, the closest fit first, with the reason for each and for each one that does not fit.
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Example answers. Change them to match your business.
Invoice factoring depends on whether other businesses pay you on invoices.
Nothing here checks your credit or is saved.
Product types these answers typically fit
- Business line of creditClosest fit
Draw what you need, up to a limit, and pay for what you use.
- Inventory is a repeat cost, and a line lets you draw only what you need.
- Typical speed: a few days from an online lender; days to weeks from a bank.
Typical cost: 10% to 99% APR
A lump sum repaid on a fixed schedule.
- You have a week or two, and term loans fund in 1 day to several weeks.
Typical cost: 14% to 99% APR
Repaid as a share of monthly revenue, so payments rise and fall with sales.
- Payments rise and fall with your revenue, which helps in slower months.
Typical cost: Not disclosed
A purchase of part of your future sales, not a loan. Collected by a split of sales or a fixed debit, subject to reconciliation.
- Your monthly sales are steady enough for an advance to be sized on them.
Typical cost: estimated 40% to 350% APR
Not a fit for these answers, and why (3)
- SBA 7(a) loanSBA loans usually take several weeks or longer to fund, and you need the money sooner.
- Equipment financingEquipment financing only pays for equipment, and that is not what you need the money for.
- Invoice factoringFactoring only works when other businesses owe you money on invoices, which is less common in your industry.
For comparison: bank small-business loans averaged 6.37% to 10.98% in early 2026, for owners who qualify.
Find my fundingYour time in business, revenue, credit, purpose and industry carry into the quiz, already filled in.
A general guide to product types, not an offer or a decision. Funders weigh more than these answers and confirm real eligibility.
How the math works
- Hard rules first. A product is marked not a fit with a plain reason when your answers rule it out: for example, equipment financing when the money is not for equipment, or factoring when your industry does not usually bill other businesses on invoices.
- Then points. Each remaining product gets points for how well it matches your timing, credit, time in business, revenue and purpose.
- Then order. The highest score is the closest fit and the next two or three follow. Ties go to the cheaper product.
These are our routing rules, not lender rules. The cost ranges come from NerdWallet's published rate table. To see what a specific offer costs in dollars, use the offer comparer or the MCA calculator, or browse all funding types.
Common questions
Sources
- NerdWallet, Business loan interest rates (APR ranges by product; bank small-business loan 6.37% to 10.98%, updated Sep 16, 2026), accessed Oct 20, 2026
- NerdWallet, Is a Merchant Cash Advance Right for Your Business? (funding speed, repayment terms), accessed Oct 20, 2026
- NerdWallet, Business Term Loans (terms and funding speed), accessed Oct 20, 2026
- NerdWallet, SBA loan rates (funding can take several weeks or longer), accessed Oct 20, 2026
- U.S. Small Business Administration, 7(a) loans (maximum loan amount), accessed Oct 20, 2026
- NerdWallet, Invoice Factoring (fees and how it works), accessed Oct 20, 2026
- NerdWallet, Equipment Financing (rates and qualifying), accessed Oct 20, 2026