How Long Does It Take to Get a Business Loan?

Getting a business loan can take anywhere from a few hours to several months. 

The timeline depends almost entirely on where you borrow. 

Online lenders routinely fund within one to three days. Some offer same-day approval and funding if you apply early enough. 

Traditional banks take two to four weeks on average, sometimes longer. 

SBA loans are the slowest, typically requiring 30 to 90 days from application to funding. If you need money fast, your choice of lender matters more than almost anything else.

Business Loan Timelines by Loan Type

Different products move at different speeds. Here's what to realistically expect.

Online Term Loans: 1 to 7 Days

Online lenders built their businesses on speed. While banks were taking weeks to process applications, companies like OnDeck, Fundbox, and Kabbage started approving loans in hours.

The typical timeline looks like this:

Application: 10 to 30 minutes. Most online applications are short. Basic business info, bank account connection, intended use of funds.

Decision: Same day to 24 hours. Many lenders use automated underwriting that analyzes your bank data and returns a decision almost immediately. More complex applications might take a day for human review.

Funding: 1 to 3 business days after approval. Once you accept the offer and sign documents, money typically hits your account within one to three days. Some lenders offer same-day or next-day funding for an additional fee or if you apply early in the day.

If speed is your priority, online lenders are hard to beat. The tradeoff is cost. Faster, more accessible loans come with higher interest rates than what you'd pay at a bank.

Merchant Cash Advances: Same Day to 3 Days

MCAs are the fastest form of business financing available. Because approval is based primarily on your sales volume rather than extensive credit analysis, the process is streamlined.

Application: 10 to 15 minutes. Basic business info, bank statements or bank account connection.

Decision: Often within hours. Some providers give instant decisions based on automated analysis of your sales data.

Funding: Same day to 48 hours. Many MCA providers can fund within 24 hours. If you need same-day business funding, this is usually your fastest option.

The speed comes at a price. MCAs are typically the most expensive form of business financing, with effective APRs that can exceed 50% or even 100%. But when you need money today, not next week, that cost might be worth it.

Business Lines of Credit: 1 to 14 Days

Lines of credit vary more in timeline depending on the source.

Online lenders: 1 to 5 days. The process is similar to online term loans. Quick application, fast decision, funding within a few days of approval.

Banks: 1 to 3 weeks. If you're getting a line of credit from a traditional bank, expect a more thorough review process. More documentation, more back-and-forth, slower decisions.

The nice thing about lines of credit is that once you're approved, the funds are available immediately when you need them. The upfront timeline matters, but after that, you can draw money on demand.

Traditional Bank Loans: 2 to 8 Weeks

Banks move slowly. There's no way around it.

Application: Can take hours to complete if you're gathering all required documents. Banks want tax returns, financial statements, business plans, and more.

Initial review: 1 to 2 weeks. A loan officer reviews your application, requests additional documentation, and decides whether to move forward.

Underwriting: 1 to 3 weeks. The bank's underwriting team digs into your financials, verifies information, and assesses risk.

Approval and closing: 1 to 2 weeks. Final approval, document preparation, and funding.

Total timeline: anywhere from two weeks for simple loans to established customers, to two months or more for larger or more complex requests.

Why so slow? Banks have more bureaucracy, more compliance requirements, and less automation than online lenders. They're also pickier about who they approve, which means more thorough review processes.

The upside is cost. Bank loans typically carry the lowest interest rates available. 

SBA Loans: 30 to 90+ Days

SBA loans offer some of the best terms available for small business loans, but patience is required.

Application: Several hours to days. SBA applications require extensive documentation. Business and personal tax returns, financial statements, business licenses, ownership information, debt schedules, and more.

Lender review: 2 to 4 weeks. The bank or lender you're working with reviews everything before submitting to the SBA.

SBA review: 1 to 3 weeks. The SBA reviews the application and issues a decision.

Closing: 1 to 2 weeks. Final documentation, lien filings if applicable, and funding.

Total timeline: 30 days on the fast end, 90 days or more for larger loans or those requiring additional review.

According to the SBA, the average time from application to funding for 7(a) loans runs about 45 to 60 days. Some lenders using SBA's preferred lender program (PLP) can move faster because they're authorized to make approval decisions without waiting for SBA review.

If you're planning a major purchase or expansion, SBA loans are worth the wait. The lower rates and longer terms can save significant money over time. But don't apply for an SBA loan if you need money in the next 30 days.

Invoice Factoring: 1 to 7 Days (Setup), Then Same Day

Factoring has a two-phase timeline.

Initial setup: 3 to 7 days for most factoring companies. They need to review your business, verify your invoices, and establish an account. Some can set up faster, within 1 to 3 days.

Ongoing funding: Same day to 24 hours. Once you're set up, submitting new invoices for factoring is fast. You can often receive advances within hours of submitting an invoice.

If you have outstanding receivables and need to improve cash flow, factoring provides quick access after the initial setup period.

Equipment Financing: 3 to 14 Days

Equipment loans fall somewhere between online lenders and traditional banks.

Application: 30 minutes to a few hours, depending on the lender and loan size.

Decision: 1 to 3 days for most equipment lenders. Larger purchases may take longer.

Funding: 3 to 10 days after approval. The equipment itself serves as collateral, which simplifies some aspects of underwriting but adds steps around verifying the purchase.

For straightforward equipment purchases from established vendors, the process is relatively smooth. Custom equipment or complex transactions take longer.

What Affects Approval Time?

Even within the same loan type, some applications move faster than others. Here's what creates delays.

Your Preparation

The single biggest factor you can control is how ready you are when you apply.

Missing documents slow everything down. If a lender asks for six months of bank statements and you provide three, you've just added days to your timeline while you dig up the rest. If your tax returns don't match the revenue numbers on your application, expect questions and delays.

Get your documentation together before you start the application. Business bank statements (three to six months), tax returns, formation documents, identification. Having everything ready means fewer back-and-forth requests.

Loan Size

Bigger loans get more scrutiny. A $25,000 line of credit might sail through automated underwriting. A $500,000 term loan gets human review from multiple people.

This is true across all lender types. Online lenders move faster on smaller amounts. Banks spend more time on larger requests. SBA loans over certain thresholds require additional review.

If you're in a hurry, consider whether you can accomplish your goal with a smaller amount that would be approved faster.

Your Credit Profile

Cleaner credit profiles move faster. If your application is straightforward, strong credit, solid revenue, simple business structure, there's less to investigate.

Complications slow things down. Low credit scores, recent negative items, complex ownership structures, unusual revenue patterns. Anything that raises questions requires human review and often additional documentation.

This doesn't mean you won't get approved with a messier profile. But expect the process to take longer.

Collateral Requirements

Secured loans take longer than unsecured loans. When collateral is involved, lenders need to verify and appraise the assets, file liens, and handle additional paperwork.

Equipment financing requires verifying the equipment purchase. Real estate-backed loans require appraisals. These steps add days or weeks to the timeline.

If speed matters more than rate, unsecured financing eliminates collateral-related delays.

Industry and Business Type

Some industries face additional scrutiny. Businesses in regulated industries, those with complex revenue models, or those in sectors lenders consider higher risk take longer to underwrite.

Restaurants, construction companies, and seasonal businesses often face more questions about cash flow stability. Cannabis-adjacent businesses, firearms dealers, and adult entertainment face limited lender options and longer reviews.

If your business is straightforward, retail, professional services, established e-commerce, the process typically moves faster.

The Lender's Process

Not all lenders are equally efficient. Some have streamlined their operations for speed. Others are stuck with legacy systems and manual processes.

Even among online lenders, there's variation. Some fund in 24 hours routinely. Others take a week. Reading reviews and asking about typical timelines before you apply helps set expectations.

How to Speed Up the Loan Process

You can't make a bank move like an online lender, but you can eliminate delays within whatever process you're using.

Prepare Documents in Advance

Before you start any application, gather:

1. Three to six months of business bank statements
2. Two years of business tax returns (if you have them)
3. Two years of personal tax returns
4. Business formation documents (Articles of Incorporation, LLC Operating Agreement, etc.)
5. EIN verification letter
6. Business licenses
7. Personal identification for all owners with 20% or more stake
8. Current profit and loss statement
9. Balance sheet

Not every lender requires all of these, but having them ready means you can respond immediately when asked.

Know Your Numbers

Be able to answer basic questions about your business without hesitation. What's your monthly revenue? What's your average bank balance? How much debt do you currently carry? What's the loan for?

Unclear or inconsistent answers trigger follow-up questions. Confident, consistent answers keep things moving.

Apply Early in the Day

If you're targeting same-day or next-day funding, timing matters. Many lenders have cutoff times for same-day processing. Apply at 3 PM and you might miss the window. Apply at 9 AM and you give yourself the best shot.

This matters most for MCAs and online lenders offering expedited funding.

Respond Quickly to Requests

Lenders will ask for additional information. Sometimes it's a document they need. Sometimes it's clarification on something in your application. The faster you respond, the faster they move forward.

Check your email and phone regularly during the application process. A request that sits unanswered for three days adds three days to your timeline.

Choose the Right Lender for Your Timeline

If you need money in 48 hours, don't apply to a bank. If you have 60 days and want the best rate, don't settle for an expensive MCA.

Match your lender choice to your timeline. Here's a rough guide:

Consider Pre-Qualification

Some lenders offer pre-qualification with a soft credit check. This gives you a sense of what you'd qualify for without committing to a full application.

Pre-qualification doesn't guarantee approval, but it can help you identify the most promising options before investing time in complete applications.

When to Start the Loan Process

The best time to apply for a business loan is before you desperately need one.

Urgency limits your options. When you need money this week, you're stuck with whatever's fast, regardless of cost. When you have time, you can shop around, compare offers, and negotiate.

If you're planning a major purchase, expansion, or seasonal inventory build-up, start the financing process at least 30 to 60 days ahead. Longer if you're targeting SBA loans or traditional banks.

Establishing a line of credit before you need it is even better. Once approved, you have instant access to funds whenever a need arises. The time to set that up is when business is good and you're not under pressure.

Frequently Asked Questions

Can I get a business loan in one day?

Yes. Merchant cash advances and some online lenders offer same-day approval and funding. You'll typically need to apply early in the day and have straightforward financials. Same-day options are available but usually come with higher costs than slower alternatives.

Why do bank loans take so long?

Banks have more rigorous underwriting processes, more documentation requirements, and more layers of approval. They're also subject to more regulatory oversight than online lenders. The thoroughness that makes bank loans cheaper also makes them slower.

How can I get approved faster?

Prepare all documentation before you apply. Respond immediately to any requests for additional information. Choose a lender whose process matches your timeline. Apply for an amount appropriate to your revenue and credit profile. Complicated applications take longer.

Does pre-approval speed up the process?

Pre-approval or pre-qualification can help by identifying issues early and narrowing your lender options. But it doesn't eliminate the underwriting process. You'll still need to complete a full application after pre-approval.

What's the fastest type of business loan?

Merchant cash advances are typically the fastest, with same-day funding available from many providers. Among actual loans, online term loans and lines of credit from fintech lenders are the quickest, often funding within one to three days.

How long does SBA loan approval take?

Most SBA 7(a) loans take 45 to 60 days from application to funding. Some take longer, especially larger loans or those requiring additional review. Working with an SBA Preferred Lender can sometimes speed up the process since they can approve loans without waiting for SBA review.