Small Business Loans Definition
A small business loan is borrowed capital a company receives from a lender and repays over time with interest, used to cover startup costs, equipment, payroll, inventory, expansion, or cash-flow gaps. That's the textbook version. In practice, "small business loan" is an umbrella covering term loans, lines of credit, SBA loans, equipment financing, and more, each with different costs, structures, and qualification bars. Quordx Capital is a funding brokerage that takes your single application and matches it to 3-7 best-fit lenders from a 50+ network, so you understand exactly which product fits before you sign anything.
Part of our guide to Business Loans.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
What Counts as a Small Business Loan?
At its core, a small business loan involves a principal amount, an interest rate or factor cost, and a repayment schedule. Some are lump sums repaid in fixed monthly installments (term loans). Others are revolving credit you draw and repay repeatedly (lines of credit). A few aren't technically loans at all, a merchant cash advance is a purchase of future receivables, and invoice factoring is a sale of unpaid invoices.
The definition matters because the structure determines the cost. A term loan at 12% APR and an MCA at a 1.35 factor rate are both "funding," but they behave very differently on your books. Borrow $50,000 on a three-year term loan and you'll repay it in fixed monthly installments with interest that tapers as the balance drops. Take the same $50,000 as an MCA at a 1.35 factor, and you owe $67,500 regardless of how fast you pay, the cost is fixed up front, not amortized. Same headline number, very different total.
Which Funding Options Fit the Definition?
Term Loan: A fixed lump sum repaid over months or years at a set rate, typically 8-30%. Best for: defined, one-time investments like expansion or a large purchase.
Line of Credit: Revolving access to capital, drawn and repaid as needed, around 8-25%. Best for: recurring or unpredictable working-capital needs.
SBA Loan: Government-backed, low-rate financing up to $5M at roughly 9-11.5% APR. Best for: established businesses (2+ years) wanting the lowest cost.
Estimate your funding
Answer a few questions about your business to see a likely range.
How Quordx Capital Works
Apply online in about 10 minutes. Upload 3-6 months of business bank statements, your most recent business tax return, and your ID. Quordx Capital matches your profile to the best-fit lenders in our 50+ network and submits on your behalf. Most decisions return within 24-48 hours.
What to Expect
Once your documents are in, decisions typically come back in 24-48 hours, with funding in 3-7 business days. What you qualify for depends on revenue, time in business, and credit, but the definition of "qualified" varies widely by lender, which is exactly why matching beats applying blind.
Quordx Capital is free to you. No application, broker, or processing fees. The lender pays a commission only when your deal closes.
See which type of small business loan actually fits your situation, one application, multiple lenders, no cost and no obligation.
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Written by
Cody Dreis
Founder, Quordx Capital
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Quordx Capital is a business funding broker, not a lender. Lenders make every credit decision and set the rate, fees and terms, and not every business qualifies. Quordx may be paid by a lender when a deal funds. Full disclosures