Small Business Loans How Do They Work
If you're asking how small business loans work, you're at the right starting point, and the mechanics are simpler than the jargon suggests. You borrow a sum, repay it over time with interest, and the lender decides your amount and rate based on your revenue, credit, and time in business. The complexity is in choosing among products and lenders. Quordx Capital removes that friction: one application, matched to the 3-7 best-fit lenders from a 50+ network. Free to apply, decisions in 24-48 hours.
Part of our guide to Business Loans.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
How the Process Actually Flows
You apply with basic financials, bank statements, a tax return, ID. The lender underwrites your file to judge risk, then issues an offer specifying amount, rate (typically 8-30%+ depending on product and credit), term, and repayment schedule. You accept, sign, and funds hit your account.
Repayment varies by product: fixed monthly for term loans, draw-and-repay for lines of credit, or a share of daily card sales for an MCA priced on a factor rate (1.1-1.5) rather than APR. Knowing the structure up front keeps you out of surprises, an MCA's true cost is far higher than its factor rate suggests.
Which Funding Options Exist?
Term Loan: Lump sum, fixed payments, $10K, $500K+. Best for a clear, one-time need where you want predictable monthly costs.
Business Line of Credit: Revolving credit you draw as needed, $10K, $250K+. Best for ongoing or variable needs where you only pay for what you use.
SBA Loan: Government-backed, up to $5M, ~9-11.5% APR with terms up to 25 years. Best for established businesses seeking the lowest rates and longest terms.
Estimate your funding
Answer a few questions about your business to see a likely range.
Apply for Funding
No obligation · Initial inquiry doesn't impact credit · Takes about 10 minutes
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