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Short answer: it can be, but it doesn’t have to be.
How hard is it to get a business loan?
Many business owners assume the process for obtaining a loan will be painful, confusing, or full of roadblocks. And if you’re walking into a bank with little preparation, it can feel that way.
But with a clear understanding of what lenders look for, getting funded becomes much more straightforward, even in fast-moving industries like restaurants, construction, or transportation.
At National Business Capital, we’ve helped tens of thousands of business owners across these sectors secure funding, even when they weren’t sure they’d qualify. Here’s what really matters.
Can a start-up LLC get a loan?
Yes, but the path looks a little different.
Because startups don’t have years of financials or a long credit history, lenders typically look at:
- The owner’s personal credit
- Available collateral
- A solid business plan
- Early revenue or contracts (if available)
Startups often find success with SBA microloans, revenue-based financing, or alternative online lenders who understand early-stage growth. If you can clearly show potential and momentum, your chances at securing funds are greatly improved.
Is it hard to get a $100,000 business loan?
Getting a $100,000 business loan isn’t necessarily hard. It depends on:
- Your revenue consistency
- Your credit profile
- How long you’ve been operating
If your business is established and your finances are in good shape, $100K is very attainable. Even if you’re newer or your credit isn’t perfect, there are alternative lenders that look beyond traditional bank criteria. Strong documentation and predictable cash flow go a long way here.
Why business owners sometimes hit roadblocks
Common challenges in securing a business loan
Even healthy businesses run into challenges during the loan process. Here are the big ones:
- Credit score requirements: Some lenders want to see credit scores in the 630–720 range. Others don’t have a minimum. Knowing which lenders align with your profile saves time.
- Collateral and personal guarantees: Banks often require them. Many alternative lenders don’t. This is where lender fit really matters.
- Documentation and verification: Banks love paperwork: tax returns, financial statements, business plans, projections. NBC simplifies this by helping you gather only what’s actually required for your lender match.
Industry-specific quirks
Every industry has its nuances:
- Restaurants and retail → seasonal swings
- Construction and manufacturing → project-based revenue.
- E-commerce → inventory and shipping cycles
- Transportation → equipment-heavy operations
A lender who understands your industry makes all the difference.
Common types of business loans (and when they help)
Term Loans
A lump sum you repay over time. Good for growth projects, expansions, or major investments.
Lines of Credit (LOC)
A business line of credit is great for smoothing out cash flow dips. You draw what you need, when you need it.
Equipment Financing
Perfect for companies who need new machinery, vehicles, or tech, the purchased equipment itself often acts as collateral..
Cash Flow Financing
Short-term working capital to cover expenses, seize opportunities, or bridge slow periods.
How to prepare for the loan application process
Think of this as setting yourself up for the fastest “yes.”
1. Tighten up your business plan
Lenders want to see where you’re going and how you’ll get there.
2. Gather your financial documents
The basics: income statements, balance sheets, tax returns, bank statements. NBC helps you determine exactly what’s needed based on your lender match.
3. Improve your credit (if needed)
Small wins, like paying down balances or correcting errors, can move the needle fast.
4. Build relationships early
The more a lender understands your business, the more flexible they can be.
What lenders look at
Lenders assess multiple factors when evaluating a business loan application. Understanding and addressing these factors can significantly improve approval odds.
Creditworthiness
Both personal and business credit play a role, depending on your situation
Revenue and profit
Lenders simply want to see that your business brings in enough money to repay the loan.
Collateral
Not every loan requires collateral, but when it does, lenders check the value vs. the loan amount.
DSCR
Your Debt Service Coverage Ratio shows if you generate enough operating income to cover debt payments. A DSCR of 1.25+ is strong, but many lenders will work with less.
Smart ways to boost your approval odds
To enhance the chances of approval, businesses can adopt several strategic measures:
Strengthen your financial health
Even small improvements in cash flow or expenses make a big difference.
Explore all your options, not just banks
Most business owners find more flexibility through non-bank lenders, fintech lenders, or SBA programs.
Work with experts
A funding advisor can help you compare options, prepare your documents, and avoid dead ends.
Tailor your application
Different lenders care about different things. Speaking their language gets more approvals, faster.
The bottom line: getting funded isn’t as hard as it seems
Yes, the lending world can be confusing. But you don’t have to figure it out alone.
At National Business Capital, we match you with the right lender based on your business profile, goals, and timelines, and help you prepare everything you need for a confident, stress-free approval process.
See what you qualify for without impacting your credit.Start your digital application and take the next step toward growth with clarity and confidence.
ABOUT THE AUTHOR
Joseph Camberato is the CEO & Founder of National Business Capital, where he has led the company in funding more than $2.5 billion for growth-minded businesses since 2007. With firsthand experience building NBC from a startup into a national private lender, Joe writes on the economic forces shaping access to capital, including interest rate shifts, private credit trends, and the challenges mid-sized companies face when banks pull back.
