{"id":5194,"date":"2016-04-04T10:47:58","date_gmt":"2016-04-04T15:47:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/getting-a-loan-for-a-small-business.html"},"modified":"2026-05-11T10:40:00","modified_gmt":"2026-05-11T15:40:00","slug":"getting-a-loan-for-a-small-business","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/getting-a-loan-for-a-small-business.html","title":{"rendered":"Securing a Loan for Your Small Business: A Guide"},"content":{"rendered":"\n
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Securing a Loan for Your Small Business: A Guide<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last reviewed\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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A small business loan is a financial agreement where a lender provides capital to an entrepreneur that must be repaid over time with interest. Typically, lenders have the borrower sign a promissory note and provide collateral or a personal guaranty to secure the debt.<\/p>\n\n <\/div>\n\n\n\n

Small <\/span>business<\/span> loans<\/span> are similar to personal loans, with a few minor differences. How a business structures its debt and\u00a0manages its cash flow<\/a>\u00a0can be the difference between a successful business and one that ultimately fails.<\/p>\n

Below, you\u2019ll find information on how to time a\u00a0small <\/span>business<\/span> loan<\/span><\/a>\u00a0and promissory notes and cosigners. To learn more, visit FindLaw\u2019s\u00a0Starting a Business<\/a>\u00a0section.<\/p>\n

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When To Use Small <\/span>Business<\/span> Loans<\/span><\/h2>\n

Many startup owners make the mistake of taking out too many loans too quickly for a new business. Before locking yourself into a loan amount<\/span>, explore\u00a0other means of structuring your business or securing financing<\/a>.<\/p>\n

Minimize the number of loans you take out. Your business plan should focus on a timeline of your business\u2019s cash flow and customer base. Once established, consider opening a business line of credit<\/span> or apply for a U.S. <\/span>Small Business<\/span> Administration<\/span> loan (SBA<\/span>). If payments on the loan start coming due before the business begins producing sufficient revenue to cover them, it can put serious pressure on the business\u2019s cash flow.<\/p>\n

Before you start signing loan documents, consider a few alternatives:<\/p>\n