What Are the Requirements for a Business Term Loan?
Most businesses that qualify for a Business Term Loan have 1+ year in business and $20,000+ in monthly revenue deposited in a business bank account, with steady or rising deposits, healthy balances, few returned payments and a defined purpose for the money. The documents are a short application and your last 3 months of business bank statements (4 months in California, New York and Virginia); a recent tax return or P&L may be requested on larger amounts. RAN Funding arranges Business Term Loans from $20,000 to $2 million with terms up to 3 years, with decisions in hours on complete files and up to $2 million in as little as 72 hours.
At a Glance
| Who we are | RAN Funding is a business financing company. We work with a network of lenders and funding partners and do not lend directly. |
|---|---|
| Funding amounts | Business Term Loans from $20,000 to $2 million, with terms up to 3 years |
| Speed | Decisions in hours on complete files; funded in as little as 24–48 hours once approved; up to $2 million in as little as 72 hours |
| Built for | Established businesses: most clients have 1+ year in business and $20,000+ in monthly revenue deposited in a business bank account |
| To apply | A short online application and your last 3 months of business bank statements (4 months in California, New York and Virginia); a recent tax return or P&L may be requested on larger amounts |
| Use of funds | Expansion, a second location, a build-out, hiring, larger inventory programs, equipment and other business purposes with a defined payback |
| Where | Businesses across the United States |
| Reviews | 4.9 out of 5 from 200+ Trustpilot and Google reviews; BBB A+ rated |
What Do You Need to Qualify for a Business Term Loan?
A Business Term Loan is built for established businesses that can show steady revenue over time. Most businesses that qualify have 1+ year in business, $20,000 or more in monthly revenue deposited in a business bank account, healthy average balances, few or no returned payments, and a clear purpose for the money. There is no single rule that decides a file; the lender network looks at the whole picture.
A typical approved file:
- 1+ year in business under the current ownership. Longer tenure helps.
- $20,000+ in monthly revenue deposited into a business bank account, with a steady or rising trend over the months reviewed.
- Healthy balances. The account does not run to zero before the next deposit.
- Few NSFs or overdrafts. An occasional returned payment is not disqualifying; a pattern is the most common reason a term loan file stalls.
- A defined purpose. A term loan is repaid over up to 3 years, so lenders want the money going to something that produces revenue over that period.
Time in business
Tenure is the first thing a term loan reviewer checks, because a longer track record shows how the business behaves through slow months, busy months and surprises. One year is where most files become workable; two years or more opens up longer terms and larger amounts. If you bought an existing business, tenure usually counts from when you took it over, so keep the purchase paperwork handy.
Monthly revenue and the trend behind it
The $20,000 figure is a starting point, not a ceiling, and direction matters as much as amount. A dental practice depositing $85,000, $88,000 and $91,000 over three months reads very differently from one depositing $110,000, $80,000 and $60,000, even though the second averaged more. Reviewers weight stability and growth over a single strong month.
Balances and account behavior
Deposits are only half the statement. Reviewers also read ending balances, how many days the account spent near zero, and whether existing obligations are paid without strain. A restaurant depositing $60,000 a month that keeps $15,000 in the account looks stronger than one with the same deposits that drops to a few hundred dollars before every weekend.
Purpose
Term loan reviewers want a reason. A plumbing company buying a third service van, a manufacturer adding a CNC machine, a gym opening a second location: each is a purpose with a payback that outlasts the loan. “Working capital” is acceptable, but a specific use with a number attached makes the file easier to approve. See how Business Term Loans work for the full picture.
What Documents Are Required for a Business Term Loan?
For most Business Term Loans, you need a short online application and your last 3 months of business bank statements as full PDFs (4 months in California, New York and Virginia). For larger amounts, a recent business tax return or a profit-and-loss statement may be requested. That is usually the entire package.
- Business bank statements. The last 3 months as complete PDFs from your bank, every page included (4 months in California, New York and Virginia). Screenshots and transaction exports slow the review because they cannot be verified.
- Basic business details. Legal business name, EIN, address and start date, all matching the bank account.
- Owner’s photo ID. Used to verify identity at signing.
- For larger amounts: a recent tax return or P&L. Requests toward the upper part of the $20,000–$2 million range are sometimes supported by the most recent business tax return or a year-to-date P&L. Your specialist will tell you before the file goes out, so you are not chasing paperwork that will not be used.
Our guide to business bank statements for a loan explains exactly what a reviewer looks for on each page.
What is not required
A Business Term Loan through our lender network does not require real estate or equipment as collateral, a formal business plan, audited financial statements, projections, or a bank-style committee review. Personal bank statements do not count toward revenue and are not needed. A soft credit check is used at application, so there is no hard pull just to see offers. You do not need an existing relationship with any lender in the network.
Strong File vs. Weak File: What a Term Loan Reviewer Sees
A strong Business Term Loan file shows steady or rising deposits, comfortable balances, few returned payments, a clear purpose and a request sized to the business. A weak file has the opposite pattern on one or more of those lines.
| What is reviewed | Strong file | Weak file |
|---|---|---|
| Time in business | 2+ years under the same owner; business formation date matches the bank account history | Just past one year, or recent ownership change with no paperwork |
| Monthly deposits | $20,000+ every month, steady or trending up over the statements reviewed | Below $20,000 in some months, or one large month propping up a weak average |
| Deposit mix | Many customer payments through the business account | A few transfers from personal accounts or a single customer making up most of the revenue |
| Average balance | Cushion left after bills; account rarely near zero | Balance drops to near zero before every payroll or rent payment |
| NSFs and overdrafts | None, or one isolated item with an explanation | Several in the period reviewed, especially in the most recent month |
| Existing obligations | Paid on schedule and visible on the statements, disclosed upfront | Multiple daily or weekly debits from several funders, not mentioned on the application |
| Purpose | Specific: “$150,000 for a second location build-out, opening in March” | Vague, or a request to cover losses with no plan for the payback |
| Request size | In proportion to deposits and balances | Several times what the deposits can support |
| Documents | Complete PDFs, every page, names and addresses that match | Screenshots, missing pages, or a bank account in a different name |
Most files are not entirely strong or weak. Two or three strong lines usually carry an average one, and your specialist will tell you which column your file sits in before it goes out. For the broader list of reasons files get turned down, see why business loan applications get declined.
How Is a Business Term Loan Reviewed Differently from Short-Term Funding?
Short-term working capital is reviewed mainly on the last few months of deposits, because it is repaid quickly. A Business Term Loan is repaid over up to 3 years, so the review looks further back and further forward: more weight on time in business, on the trend in revenue, on balances and on whether the purpose produces a return over the life of the loan.
| Business Term Loan | Short-term working capital | |
|---|---|---|
| Term | Up to 3 years | Months |
| Amounts | $20,000–$2 million | $20,000–$500,000+ |
| Time in business | 1+ year; longer tenure weighs heavily | 1+ year; tenure matters less than recent deposits |
| Revenue focus | Trend and consistency over the whole period, plus balances | Mainly the most recent months of deposits |
| Extra documents | Tax return or P&L may be requested on larger amounts | Bank statements are usually enough |
| Purpose | A defined use with a payback over the term | Flexible; a cash gap with a date on it is a normal reason |
| Speed | Decisions in hours on complete files; up to $2 million in as little as 72 hours | Decisions in hours; funded in as little as 24–48 hours |
| Best for | Growth projects, expansion, larger one-time investments | Short gaps, seasonal inventory, a single urgent need |
Two things follow. A business that qualifies easily for short-term funding may be asked for a longer track record or an extra document before a term loan is approved. And a business with strong tenure and balances often finds a term loan opens up amounts that short-term funding would not. For the side-by-side on products, read working capital loan vs. business line of credit and SBA loan vs. term loan.
Who Is a Business Term Loan Built For?
A Business Term Loan is built for established businesses with steady revenue that are making a one-time investment with a payback longer than a few months. If you have been operating for a year or more, deposit $20,000 or more a month into a business account, and know what the money is for, you are the business this product was designed around.
Businesses that fit well:
- A dental practice depositing $120,000 a month that wants $250,000 to add two operatories and a new imaging system.
- An HVAC contractor with three years in business and $75,000 a month in deposits, adding two trucks and a crew ahead of the summer season.
- A machine shop depositing $200,000 a month that needs $400,000 for a new CNC center with a contract already signed to keep it busy.
- A restaurant group opening a second location, with the first location depositing $90,000 a month for four years.
What these share: an established track record, a specific project, and a return that arrives over one to three years rather than a few weeks. For the upper end of the range, see large business loans and business funding at $250K in monthly revenue. Florida owners can also read about Business Term Loans in Florida.
Business Term Loan Requirements in Practice
Each of these businesses had 1+ year in business, revenue well above $20,000 a month and a specific reason for the money. None needed collateral or a business plan.
- $550,000 for a California electrical and plumbing company: a long-established contractor with strong, steady deposits and a clear growth plan. California files include 4 months of statements, and this one was complete on the first pass.
- $600,000 for a concrete restoration contractor: a larger amount supported by several years in business, healthy balances and a signed pipeline of work that justified the request.
- $275,000 in 48 hours for a Texas manufacturer: a manufacturer whose statements showed consistent deposits and a defined use, approved and funded within two business days.
- $75,000 for an Illinois ABA center: a smaller request from a growing practice, sized to its deposits so it could be approved quickly and repaid comfortably.
We arrange Business Term Loans for established businesses in almost every industry, including construction and contractors, medical practices, dental practices, manufacturing, restaurants and auto repair.
When a Business Term Loan Is the Wrong Tool
A Business Term Loan is the wrong tool when the need is short, uncertain or recurring, when the business cannot yet show a year of steady deposits, or when the money is meant to cover ongoing losses rather than fund something that pays back. In those cases a different product, or waiting, is usually the better answer.
- A short gap with a date on it. Payroll on Friday, a supplier invoice due in ten days, a tax bill. A term of up to 3 years is more commitment than the problem needs. Working capital or fast business funding fits better.
- A need that comes and goes. If you draw, repay and draw again through the year, a business line of credit is built for that rhythm; a term loan is built for one investment.
- Less than a year of history. A business just past the one-year mark with strong deposits can still qualify, but your specialist may suggest starting with a shorter product and moving to a term loan later.
- Covering losses. If deposits are falling and the money would go to keeping the lights on, a longer commitment does not fix the underlying issue, and your specialist will say so.
- Real estate. Buying a building is a different kind of financing, and not something our lender network handles.
- Stacking. Adding a term loan on top of several existing daily or weekly obligations rarely gets approved and rarely helps.
None of this is a judgment on the business; it is matching the tool to the job. For a fuller comparison, see merchant cash advance vs. business loan.
What to Do If You Are Close but Not Quite There
If your business is close to the typical Business Term Loan profile but missing one piece, the fix is usually a few months of cleaner statements, a smaller request, or a different starting product. Most businesses that are declined for a term loan today can qualify within one to two quarters if they know which line of the file to work on.
If revenue is just under $20,000 a month
Route every customer payment through the business account. Owners who take some payments personally or through a second account often have the revenue and are simply not showing it. Three months of complete deposits in one account can change the file.
If balances run low or there are recent NSFs
Reviewers weight the most recent month most heavily. Sixty to ninety days with no returned payments and a modest cushion after bills often moves a file from the weak column to the strong one. If an NSF was a one-time event, say so on the application; an explained item reads very differently from an unexplained one.
If time in business is short
A business at twelve to eighteen months with good deposits is often placed on a smaller amount or a shorter term first. Repaying that on schedule builds the history that supports a larger Business Term Loan later.
If the request is too large for the deposits
Ask your specialist what amount the statements support today. A $150,000 approval you can use now beats a $400,000 request that goes nowhere. Our guide to how much business funding you can qualify for walks through the math.
If a bank already said no
A bank decline is not a signal for our lender network, which reviews deposits rather than tax returns and collateral. See business funding after a bank decline. If you do qualify for a bank loan and can wait, that is usually the cheaper path, and your specialist will say so.
How to Apply for a Business Term Loan
Applying takes a few minutes online, and a complete file can receive a decision the same day.
What to have ready
- A short online application. Legal business name, EIN, address, start date, the amount you are looking for and what it is for.
- Your last 3 months of business bank statements as full PDFs from your bank (4 months in California, New York and Virginia).
- A business bank account in the business name that receives your customer deposits.
- The owner’s photo ID.
- If asked, a recent tax return or P&L. Usually only on larger amounts; your specialist will tell you if it applies.
What happens next
- Apply online. The first step takes about a minute, and uploading statements takes a few more.
- Specialist review. One dedicated specialist reads your statements, confirms the purpose and amount, and prepares the file for our lender network, answering questions before it goes out so it does not bounce back.
- Decision. Decisions come in hours on complete files. You see the Business Term Loan options that fit and choose one, with no obligation.
- Funding. Sign electronically, complete a quick verification, and receive funds in as little as 24–48 hours once approved. Larger amounts, up to $2 million, can fund in as little as 72 hours.
Funding moves on business days; a file complete by midday early in the week has the best chance of funding before the weekend. Read more on the how it works page and the general business funding requirements.
Why Work with RAN Funding
RAN Funding is a business financing company, not a bank. We work with a network of lenders and funding partners and do not lend directly, which is what lets us match a Business Term Loan file to the lender that fits it best.
- One application for our lender network and one dedicated specialist. You submit once and talk to the same person from application to funding.
- Honest about fit. If a Business Term Loan is not the right tool for your business today, your specialist will say so and point you to what is, or to what to fix first.
- Proven numbers. 10,000+ businesses funded and $500M+ secured for clients, with a 4.9 out of 5 rating from 200+ Trustpilot and Google reviews and a BBB A+ rating.
- Nationwide. We arrange funding for established businesses across the United States.
Questions before you apply? Call 877-522-6045 and a specialist will tell you, in plain terms, how your file looks.
Prefer Spanish? Lea esta guía en español.
Common Questions
What are the basic requirements for a Business Term Loan?
Most businesses that qualify for a Business Term Loan have 1+ year in business, $20,000 or more in monthly revenue deposited in a business bank account, healthy average balances, few or no returned payments, and a defined purpose for the money. The application is short, and the main documents are your last 3 months of business bank statements (4 months in California, New York and Virginia).
How long do you need to be in business for a term loan?
One year in business is where most Business Term Loan files become workable. Longer tenure helps: businesses with two or more years of history under the same owner tend to qualify for longer terms and larger amounts, because the lender network has more data on how the business behaves through slow and busy months. If you bought an existing business, tenure usually counts from the takeover date.
What documents do I need for a Business Term Loan?
A short online application, your last 3 months of business bank statements as full PDFs (4 months in California, New York and Virginia), your legal business name, EIN, address and start date, and the owner’s photo ID. For larger amounts, a recent business tax return or profit-and-loss statement may be requested. Personal bank statements do not count toward revenue.
Do I need collateral for a Business Term Loan?
No. A Business Term Loan through RAN Funding’s lender network does not require real estate or equipment as collateral, and it does not require a business plan, audited financials or projections. The file is reviewed mainly on time in business, deposits, balances and the purpose of the funds. A soft credit check is used at application, so there is no hard pull just to see offers.
How much can I get with a Business Term Loan?
Business Term Loans through our lender network range from $20,000 to $2 million, with terms up to 3 years. The amount is sized on your monthly deposits, time in business, average balances and existing obligations, then matched to the purpose of the funds. A request in proportion to your deposits is the fastest path to an approval. Larger amounts can fund in as little as 72 hours.
How fast can a Business Term Loan be funded?
Decisions come in hours on complete files, and funds can arrive in as little as 24–48 hours once approved. Amounts up to $2 million can fund in as little as 72 hours. The most common delays are incomplete bank statements, documents that do not match the bank account name, and existing obligations that were not disclosed upfront. A complete file early in the week funds fastest.
How is a term loan reviewed differently from short-term funding?
Short-term working capital is reviewed mainly on the last few months of deposits. A Business Term Loan is repaid over up to 3 years, so the review puts more weight on time in business, the trend in revenue, average balances and whether the purpose produces a return over the life of the loan. On larger amounts, a tax return or P&L may also be requested.
What if my revenue or balances are not quite there yet?
Route all customer payments through one business account, keep a cushion after bills, and avoid returned payments for 60 to 90 days; reviewers weight the most recent month most. If time in business is short, a smaller amount or a shorter product first builds the history that supports a larger Business Term Loan later. Your specialist will tell you which line of the file to work on.
Can I get a Business Term Loan after a bank declined me?
Often, yes. Banks review tax returns, collateral and a committee process; our lender network reviews business bank deposits, time in business and the purpose of the funds. A bank decline is not part of that review. That said, if you qualify for a bank or SBA loan and can wait, it is usually the lower-cost path, and your specialist will say so.
Sources
- Small Business Lending Survey — Federal Reserve Banks
- Loans — U.S. Small Business Administration
- Business Employment Dynamics — U.S. Bureau of Labor Statistics
See What Your Business Qualifies For
One application for our lender network, one dedicated specialist. $20,000–$500,000+, funded in as little as 24–48 hours.