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From Business Loan Rates to Loan Terms, AVANA CUSO Provides Professional Guidance on Applying for Commercial Loans

Whether you’re planning to start a business or make changes to an existing one, you may need additional funds. That’s when a business loan typically enters the picture. AVANA CUSO, an experienced commercial real estate lender, promotes LendThrive, an automated financing platform that offers a variety of business loan options to help business owners pivot and grow. Business loans provide the funds for working capital, equipment, expansion, real estate, hiring and more. From business loan rates to terms, AVANA CUSO explains here how to get a business loan.

7 Steps to Getting a Business Loan

In short, here are the seven steps you’ll need to follow to get a business loan:

Step 1: Determine the loan amount you need for your business plan.

Step 2: Establish the type of loan you need (ex. bank loan, microloans, equipment financing, small business loan, business lines of credit or accounts receivable financing).

Step 3: Check your personal and business credit scores to determine your credit position (If you have a lower score, take time to work on it before applying for a business loan).

Step 4: Obtain the necessary documents, including financial statements, tax returns, etc.

Step 5: Assess your personal and business collateral to determine the amount you can put up to secure the loan (The more you can pledge, the lower the risk to the lender).

Step 6: Compare business loan lenders by considering annual percentage rates, terms, fees, etc. We always recommend talking to your local credit union(s) because they offer personalize support, a wide range of products and more.

Step 7: Complete the business loan application at your preferred lender.

What Is Needed for a Business Loan?

The three major factors that determine your qualification for a business loan include:

  1. Credit Score

Lenders will check two types of credit: personal and business. When first starting a business, your personal credit score will carry more weight, as your business score won’t exist yet. As your company matures, your business credit will overshadow your personal credit. Personal credit scores range from 350 to 800, with an excellent score being above 750. Business credit scores run from 1 to 100, with optimal scores being above 80.

  1. Cash Flow & Income

Lenders check your businesses debt-to-income ratio. The higher your cash flow and income and the lower your debt, the greater chance you have of getting the loan.

  1. Collateral 

In addition to checking debt, lenders review your business and personal collateral. The more collateral you offer (ex. vehicles or real estate), the lower the interest rate.

Typical Business Loan Terms & Rates

Business loan terms vary based on the type of loan you choose, according to Fundera, a resource that assists small business owners in comparing loans. Small Business Administration (SBA) loans range from five to 25 years, while traditional bank loans can run three to 10 years. Terms for business lines of credit are on the shorter side at six months to five years, while equipment financing options range from two to five years.

Similar to terms, business loan interest rates fluctuate based on the type of loan required and the borrower’s financial health. Traditional bank loans can run at a fixed rate of 2% to 13%, while small business loans typically range from 5% to 11%.

How to Take Out a Business Loan with No Money Down

Although you may not be required to put money down, you’ll need to offer business collateral (equipment, machines, vehicles or real estate) or personal collateral (vehicles, homes or valuables). Term loans, business lines of credit and SBA microloans are sometimes available with no money down through certain lenders.

Where Can I Get a Business Loan?

AVANA CUSO has worked with business owners for over two decades. And while primarily serving as their financing resource for the purchase and refinance of commercial real estate loans, we understand the importance of their other financing needs. Our partner, LendThrive, provides ease of use through its online platform, which can help business owners secure the capital they need in as little as 48 hours. And, when entrepreneurs are ready to buy their first commercial property, AVANA CUSO will work with our credit unions and brokers to fund the right loan and service them from origination to pay-off.



Established in 1998 and headquartered in Simi Valley, CA, AVANA CUSO offers competitive commercial real estate loans. We partner with credit unions and connect them to investors across the United States. Additionally, we uniquely support and guide our partners through the entire loan process. AVANA CUSO is a proud member of the AVANA Family of Companies.