Types of Business Loans
- ✓Term Loans: Lump sum, fixed payments, 1–10 years
- ✓Lines of Credit: Draw as needed, revolving
- ✓SBA Loans: Government-backed, lower rates, more paperwork
- ✓Revenue-Based Financing: Repay as percentage of monthly revenue (Rise Up's model)
- ✓Equipment Financing: Secured by equipment, lower rates
What Lenders Evaluate
For business loans, lenders look at: time in business (min. 6 months for most), monthly revenue (min. $10,000 for most lenders), credit score (owner's personal), debt-to-income ratio, and industry type.
Rise Up Lending specializes in revenue-based underwriting — meaning strong monthly cash flow can compensate for a fair credit score. A business doing $30K/month revenue with consistent deposits is a strong candidate even with a 590 owner score.
Interest Rates to Expect
SBA 7(a): Prime + 2.25%–4.75% | Bank term loans: 6%–13% for prime borrowers | Online lenders: 9.5%–45%+ depending on credit quality | Revenue-based: Factor rates 1.1–1.4x. Rise Up Lending business APRs: 9.5%–32.9%.
How to Maximize Approval Odds
- ✓Keep 3–6 months of bank statements clean (no NSF fees, positive balances)
- ✓Separate business and personal banking before applying
- ✓Have a clear answer for what the capital will be used for
- ✓Reduce outstanding business debt-to-income ratio if possible
Elena Vasquez, CFP®
Chief Lending Officer
15 years consumer finance · Former VP Wells Fargo