Small Business Loans How Do They Work
If you're asking how small business loans work, you're at the right starting point, and the mechanics are simpler than the jargon suggests. You borrow a sum, repay it over time with interest, and the lender decides your amount and rate based on your revenue, credit, and time in business. The complexity is in choosing among products and lenders. Quordx Capital removes that friction: one application, matched to the 3-7 best-fit lenders from a 50+ network. Free to apply, decisions in 24-48 hours.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
How the Process Actually Flows
You apply with basic financials, bank statements, a tax return, ID. The lender underwrites your file to judge risk, then issues an offer specifying amount, rate (typically 8-30%+ depending on product and credit), term, and repayment schedule. You accept, sign, and funds hit your account.
Repayment varies by product: fixed monthly for term loans, draw-and-repay for lines of credit, or a share of daily card sales for an MCA priced on a factor rate (1.1-1.5) rather than APR. Knowing the structure up front keeps you out of surprises, an MCA's true cost is far higher than its factor rate suggests.
Which Funding Options Exist?
Term Loan: Lump sum, fixed payments, $10K, $500K+. Best for a clear, one-time need where you want predictable monthly costs.
Business Line of Credit: Revolving credit you draw as needed, $10K, $250K+. Best for ongoing or variable needs where you only pay for what you use.
SBA Loan: Government-backed, up to $5M, ~9-11.5% APR with terms up to 25 years. Best for established businesses seeking the lowest rates and longest terms.
Apply for Funding
No obligation · Initial inquiry doesn't impact credit · Takes about 10 minutes
Written by
Cody Dreis
Founder, Quordx Capital
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Important Disclosures
Quordx Capital is a business funding broker, not a lender. We facilitate introductions between U.S. small and medium-sized businesses and lenders or capital providers in our network. All credit decisions, funding amounts, rates, fees, repayment terms, and timelines are determined solely by individual lenders based on their own underwriting criteria.
Funding figures and timelines shown on this page are illustrative and represent ranges within our lender network, they are not guarantees and individual outcomes may vary based on business profile, industry, time in business, revenue, credit history, and lender availability. Not all applicants qualify for every product.
The initial inquiry does not impact your personal credit score. Some lenders may perform a hard credit pull during underwriting; Quordx only authorizes such checks with your specific consent for the lender presenting an offer. Applicants are protected under the Equal Credit Opportunity Act (ECOA) from discrimination based on race, color, religion, national origin, sex, marital status, age, or because all or part of an applicant's income derives from any public-assistance program.
This Site is intended for commercial, business-purpose financing for U.S. businesses only. Not available for consumer loans, residential mortgages, or owner-occupied real estate. Quordx may receive compensation from lenders when applications result in funded transactions. This does not change the rate, fee, or terms offered to you. See our Advertiser Disclosure for details.
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