Small Business Loans Explained
If you're trying to get small business loans explained without the jargon, here's the whole landscape in plain terms. A small business loan is money a lender gives your company that you repay with interest, but "loan" hides a dozen different products, each priced and structured differently. The right one depends on what you need the money for, how fast, and what your business can qualify for. Quordx Capital exists to cut through that complexity: one free application, matched to 3-7 best-fit lenders from a 50+ network, so you see real options side by side.
Part of our guide to Business Loans.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
How the Pieces Fit Together
Think in three buckets. Lump-sum products (term loans, SBA loans, working capital) give you a fixed amount you repay on a schedule, good for defined investments. Revolving products (lines of credit, business credit cards) let you draw and repay repeatedly, good for fluctuating needs. Revenue-based products (merchant cash advances, invoice factoring) tie repayment to your sales, fast, flexible, but often costlier.
Rates range widely: SBA loans around 9-11.5% APR, term loans 8-30%, lines of credit 8-25%, equipment financing 7-20%. MCAs use factor rates (1.1-1.5) rather than APR, which makes them look cheaper than they are.
Here's why that distinction trips people up. APR spreads cost across the life of the loan and shrinks if you repay early. A factor rate is fixed: $50,000 at a 1.40 factor means $70,000 repaid, period, paying it off in four months instead of twelve doesn't lower that figure, it just raises the effective annualized cost. So when you compare two offers, convert everything to the same yardstick. The cheapest-looking monthly payment is frequently the most expensive deal once you total what you actually hand back.
Which Funding Options Should You Know?
Term Loan: Fixed lump sum, set repayment, 8-30% APR. Best for: one-time investments like expansion or equipment.
Line of Credit: Revolving capital, ~8-25%, drawn as needed. Best for: managing ongoing cash-flow swings.
SBA Loan: Government-backed, up to $5M at ~9-11.5% APR. Best for: established businesses 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 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
Expect decisions in 24-48 hours and funding in 3-7 business days. What you qualify for depends on revenue, time in business, and credit, and qualification bars vary so much between lenders that matching is the smartest first move. Understand the cost structure before you sign; a low monthly payment can hide a high total cost.
Quordx Capital is free to borrowers. No application, broker, or processing fees. The lender pays commission only when your deal closes.
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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