Free guide · Written by a commercial banker
Business financing, explained from the banker’s side of the desk.
A free, banker-written guide to business financing: what qualifies you, what it really costs, and what to do if your bank says no.
- 10 chapters
- 3 calculators
- $0 to read
Will a bank say yes?
1.50×Excellent debt service coverage ratio
Strong coverage. At 1.50× and up, you’re in line for better pricing and more flexibility.
Start with your question
What brought you here today?
Will I qualify?
See what a lender actually checks, and get your own number in under a minute.
Chapter 3 + DSCR meterWhat will financing cost?
Turn confusing rates into one number you can actually compare.
Chapter 6 + cost comparatorBank said no?
Find out what went wrong, and what to do next.
Chapter 8 + the five fixesBanks lend on cash flow, not on hope.
Debt service coverage, not your pitch, decides most approvals.
Profit is an opinion. Cash is a fact.
A profitable company can still run out of cash. Chapter 4 helps you see it coming.
You have two credit files, not one.
Your personal score and your company’s file are scored separately, and lenders check both.
The real cost of capital is rarely the sticker rate.
Factor rates and daily payments are hard to compare until you turn them into one number.
A “no” is information, not a verdict.
Most declines trace back to one of five fixable reasons.
The full guide
Ten chapters. Read in order, or jump to what you need.
Every chapter is free to read. No sign-up, no paywall.
- Introduction to Business Financing: Why This MattersWhy smart owners treat capital as a production tool, how to tell good debt from bad, and the hidden cost of waiting too long to borrow.
- Understanding Your Business Financial StatementsRead your income statement, balance sheet, and cash flow statement the way your banker does, and learn which statement quality level your borrowing requires.
- Key Financial Ratios: What Banks Look AtThe five ratios that decide your borrowing capacity: DSCR, current ratio, debt-to-equity, gross margin, and FCCR, plus four moves that improve them in 90 days.
- Cash Flow Management: Why Profit Doesn’t Equal CashWhy profitable companies run short of cash, how to shorten your cash conversion cycle, and how a 13-week forecast keeps surprises from reaching your banker.
- Understanding Credit and Building Business CreditHow business credit is built and scored separately from your personal credit, and what a lender is really checking before they say yes.
- The Financing Menu: Loan Types, Lenders, and How Pricing WorksLines of credit, term loans, SBA 7(a) and 504, equipment and AR financing, the lender landscape, merchant cash advance warnings, and how loan pricing really works.
- Understanding Collateral and Loan StructuresWhat lenders accept as collateral, advance rates and LTV, guarantees and recourse, term vs. maturity vs. amortization, and how to negotiate covenants before you sign.
- The Application Process: From Request to FundingWhat lenders ask for, what underwriting does with it, realistic timelines, how to read a term sheet, the five common decline reasons, and what to do next.
- Working With Your Banker: Building a Strong RelationshipHow to build a relationship with your banker that pays off before you need a loan, not just when you're applying for one.
- Conclusion: Your Path ForwardDaniel and Maria five years on, the four stages of financial maturity, a 30/90/365-day action plan, and the questions that shape your next phase of growth.
Free calculators
Run the numbers a credit committee runs.
DSCR Calculator
Will your cash flow cover the payments? The first number every lender runs.
Open the calculatorLoan Payment Calculator
Monthly payment and total cost, with side-by-side comparison of two offers.
Open the calculatorCash Conversion Cycle
How many days your cash is trapped between paying suppliers and getting paid.
Open the calculatorFree download
Take the whole guide with you.
The book as a PDF, plus the 13-week cash forecast spreadsheet: the one document that most changes how a bank sees you.
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Straight answers
Questions owners ask us most
How to Use an SBA Loan to Buy a Business
SBA 7(a) loans are the most common way to buy a small business. You need at least 10% down, cash flow that covers the payments 1.25 times, and a seller who exits fully or guarantees the loan for two years.
How Much Is the Down Payment on an SBA Loan?
Most SBA loans need 10% down. SBA 504 loans need 10% to 20% depending on your business and building. Startups and business purchases need at least 10%, and a seller note can cover up to half of it.
SBA Express Loan: How It Works and Who It Fits
SBA Express loans go up to $500,000 with an SBA decision in about 36 hours. They can be a term loan or a line of credit. The trade-off is a smaller 50% guarantee, so lenders can be stricter.
SBA 7(a) vs. 504 Loan: Which One Fits Your Business?
SBA 7(a) loans are flexible and cover almost any business need. SBA 504 loans are built for buying real estate and big equipment with a low, fixed rate. Here is how to choose.
SBA 7(a) Loan Requirements: What You Need to Qualify in 2026
To get an SBA 7(a) loan you need a for-profit U.S. business owned 100% by U.S. citizens or nationals, cash flow that covers the payments, and a personal guarantee from every 20% owner. Here is the full list.
SBA 504 Loan Requirements: Who Qualifies and What It Takes
SBA 504 loans are for buying or building real estate and long-life equipment. You need a for-profit business that occupies at least 51% of the building, 10% to 20% down, and cash flow that covers the payments.
Multifamily Loans: How to Finance an Apartment Building
Apartment buildings with 5 or more units use commercial loans. Banks typically lend 70% to 75% of value, want a DSCR of 1.20 to 1.25 on the property's income, and look closely at the rent roll and your experience.
Merchant Cash Advance Factor Rate to APR: The Real Cost
A merchant cash advance with a 1.35 factor rate paid back over six months costs about 126% APR. Here is how to convert any factor rate and what to use instead.
Business Line of Credit vs. Term Loan: Which Do You Need?
Use a line of credit for short-term cash gaps you pay back within a year. Use a term loan for things that last for years. Matching the loan to the need is the first rule of borrowing.
How Much Can My Business Borrow? How Banks Size a Loan
Banks size a business loan from your cash flow first, then check it against collateral. Here is the simple math a lender uses, with a worked example.
How Long Does an SBA Loan Take?
Most SBA 7(a) loans take 30 to 90 days from a complete application to closing. SBA 504 loans often take 60 to 90 days or more. SBA Express gets an SBA decision in about 36 hours, then closes in weeks.
Hotel Financing: How Banks Underwrite a Hotel Loan
Hotels are usually financed with SBA 504 or 7(a) loans with 15% to 20% down, or bank loans with 30% or more. Lenders look at occupancy, ADR, RevPAR, the franchise agreement, and any required renovation plan.
Gas Station Financing: How Banks Underwrite a Gas Station Loan
Most gas station purchases are financed with SBA 7(a) or 504 loans with 10% to 15% down. Lenders look at fuel gallons and margin, inside store sales, operator experience, and the environmental history of the tanks.
What Credit Score Do You Need for a Business Loan?
Most banks want owners with personal credit scores around 680 or higher. SBA lenders and online lenders can go lower. Here is how lenders use your personal and business scores.
Business Loan Documents Checklist: What Banks Ask For
The standard list of documents a bank needs for a business loan: tax returns, financial statements, a debt schedule, agings, and personal financial statements for each owner.
Why Was My Business Loan Denied? 5 Reasons and How to Fix Each
A commercial lender explains the five most common reasons business loans are declined, how to fix each one, and the three things to ask the bank right after a no.
What DSCR Do Banks Require for a Business Loan?
Most banks want a debt service coverage ratio of at least 1.25. Here is what that means, how banks calculate it, and how to raise yours before you apply.
What Do Banks Look for in a Business Loan? A Lender's Checklist
Banks look at five things: cash flow, financial statements, existing debt, credit, and collateral. Here is how a commercial lender scores each one, and the documents to have ready.