Small Business Financing, Simplified

Climb higher.
Get funded.

Caprafy helps small business owners understand, find, and qualify for financing — in one place. No jargon, no runaround. Just a clear path to capital.

Check My Loan Readiness Explore loan types ↓
$1.4T
In small business loans issued in the U.S. last year
50%
Of SBA loan applications are declined — often preventably
1.25x
Minimum DSCR most lenders require to approve a loan
2 min
To get your free Loan Readiness Score
🎯 Free Loan Readiness Score — Know your odds before you apply
Takes 2 minutes. No credit pull. No commitment.
Check My Score →
Loan Types

Which loan is right for your business?

Different financing tools serve different purposes. Here's what you need to know about each — in plain English.

🏛️
SBA 7(a) Loan
The most popular SBA program. Backed by the federal government, which lets lenders offer lower rates and longer terms than conventional loans.
Loan sizeUp to $5M
Rates~10–13% variable
TermsUp to 25 years
Min. credit680+
Moderate to qualify
🏢
SBA 504 Loan
Designed specifically for major fixed assets — commercial real estate and heavy equipment. Features below-market fixed rates.
Loan sizeUp to $5.5M
RatesFixed, ~6–7%
Terms10 or 20 years
Down payment10% minimum
Moderate to qualify
⚙️
Equipment Financing
The equipment you're buying serves as collateral, making this one of the most accessible loan types. Easier approval than most programs.
Loan sizeUp to equipment value
Rates8–18%
Terms2–7 years
Min. credit620+
Easier to qualify
💳
Business Line of Credit
Revolving credit you draw from as needed and repay. Pay interest only on what you use. Ideal for managing cash flow and covering gaps.
Credit limit$10K–$500K
Rates8–24% APR
RevolvingYes
Min. revenue$100K/yr
Easier to qualify
🚀
Business Acquisition Loan
Used to buy an existing business. Often structured as an SBA 7(a). The acquired business's cash flow is used to qualify — lenders look at the target's financials.
Loan sizeUp to $5M
Rates~10–13%
Down payment10–20%
Min. credit680+
Complex to qualify
🌱
Microloan
Small loans from mission-driven lenders (CDFIs, nonprofits, SBA intermediaries). More flexible than banks — great for startups and underserved borrowers.
Loan sizeUp to $50K
Rates8–13%
TermsUp to 6 years
Time in bizFlexible
Most accessible
The Loan Process

How business lending actually works

Most loan applications fail because borrowers show up unprepared. Here's what lenders evaluate — and how to come in ready.

01
Know Your Numbers
Revenue, net income, DSCR, and credit score are the four pillars. Lenders decide within minutes based on these alone.
02
Check Your Readiness
Use our free tool to get a score before you apply. Know your DSCR, which programs you qualify for, and what to fix first.
03
Gather Documents
2 years of tax returns, 3 months bank statements, P&L, balance sheet, and business plan. Have these ready before you apply.
04
Apply Strategically
Target the right lenders for your profile. SBA-preferred lenders move faster. CDFIs are more flexible. Match your profile to the program.
Start with Your Free Score
Resources

Learn before you borrow

Guides written for small business owners, not finance professors.

📋
SBA Loans
The Complete Guide to Getting an SBA Loan in 2025
Everything you need to know about SBA 7(a) and 504 loans — eligibility requirements, the application process, what lenders are really looking for, and how to maximize your approval odds.
12 min read →
📊
Underwriting
What is DSCR and Why Does It Matter?
The single most important number in your loan application — explained in plain English.
5 min read →
💳
Credit
How to Raise Your Credit Score Before Applying
Practical steps that can move the needle in 60–90 days.
7 min read →
⚠️
Mistakes
5 Reasons Small Business Loans Get Denied
And exactly what to do about each one before you apply.
6 min read →
FAQ

Common questions answered

The questions every small business owner asks before applying for financing.

What credit score do I need for a business loan? +
It depends on the loan type. SBA loans typically require 680+. Equipment financing can work with 620+. Microloans and CDFIs are the most flexible. Your personal credit score matters as much as your business credit — lenders check both.
How long does it take to get a business loan? +
Online lenders: 1–3 days. Banks and credit unions: 2–4 weeks. SBA loans through preferred lenders: 2–4 weeks. Standard SBA channel: 60–90 days. Having your documents organized in advance is the #1 way to speed up the process.
What is DSCR and what's a good number? +
DSCR (Debt Service Coverage Ratio) is your net income divided by your annual loan payments. Most lenders require 1.25x — meaning for every $1 of debt payment, you need $1.25 in income. Above 1.5x is strong. Below 1.0x means you're losing money.
Do I need collateral to get a business loan? +
Not always. SBA loans under $25K don't require collateral. Equipment loans use the equipment itself. Lines of credit are often unsecured. For larger loans, collateral (real estate, equipment, receivables) significantly improves your terms and approval odds.
Can I get a loan if my business is less than 2 years old? +
It's harder, but not impossible. Microloans and CDFIs are most flexible with time-in-business requirements. Revenue-based financing looks at your cash flow, not history. SBA and conventional bank loans typically require 2+ years of operating history.
What documents do I need to apply? +
Most lenders will ask for: 2 years of business and personal tax returns, 3–6 months of business bank statements, a profit & loss statement, balance sheet, business licenses, and sometimes a business plan with projections. Having these ready before you apply dramatically speeds things up.
Free — No credit pull — 2 minutes

Ready to find out where you stand?

Get your free Loan Readiness Score. Know your DSCR, your loan options, and exactly what to fix — before you walk into a bank.

Check My Loan Readiness — Free