How Long Does Your Business Need to Operate to Get a Loan?
Time in business is a key factor lenders use to assess risk. Here's what you need to know about requirements for different loan types.
Sarah Johnson, MBA
Small Business Finance Expert
Updated February 2, 2026 • 7 min read
Time Requirements by Loan Type
| Loan Type | Minimum Time | Notes |
|---|---|---|
| SBA 7(a) Loans | 2 years | Strict requirement |
| SBA Microloans | Startup OK | Available for new businesses |
| Bank Term Loans | 2 years | Typically required |
| Online Term Loans | 1 year | Some accept 6 months |
| Business Line of Credit | 6-12 months | Varies by lender |
| Equipment Financing | 1 year | Equipment is collateral |
| Invoice Factoring | 3-6 months | Customer credit matters more |
| Merchant Cash Advance | 4-6 months | Sales history required |
| Business Credit Cards | Day 1 | Based on personal credit |
Why Time in Business Matters
- Proven track record: Shows you can operate successfully
- Financial history: Provides data for underwriting decisions
- Survival indicator: 20% of businesses fail in year 1, 50% by year 5
Options for New Businesses
SBA Microloans (Up to $50K)
Available even for startups through nonprofit intermediaries. Strong personal credit and business plan required.
Business Credit Cards
Based on personal credit, not business history. Good for building business credit from day one.
Equipment Financing
Equipment serves as collateral, making approval easier for newer businesses.
Personal Loans for Business
Use personal credit to fund business needs, but you're personally liable.