.jpg)
If you're a small business owner looking for capital to grow, cover expenses, or invest in new equipment, understanding small business term loan requirements is your first step toward getting funded. Unlike revolving credit or merchant cash advances, a term loan gives you a predictable lump sum with a fixed repayment schedule.
But what does it actually take to qualify? The requirements vary from lender to lender, and what a traditional bank demands looks very different from what a direct lender like RTMI Capital requires. In this guide, we walk through everything you need to know so you can apply with confidence.
A business term loan is straightforward: you borrow a fixed amount upfront and repay it over a set period with regular payments. Terms range from a few months to several years. At RTMI Capital, we have funded over $500M across 30,000+ transactions in 80+ industries and the business term loan is our flagship product for a reason. It works.
1. Time in Business - Banks often require 5+ years. RTMI work with businesses operating as little as 1.5 years.
2. Annual Revenue - Lenders review your last 3 to 6 months of bank statements. We work with SMBs generating $600,000 in annual revenue or more.
3. Credit score - 700+: Qualify with most lenders, best rates. 650 to 699: Solid options with online and direct lenders. At RTMI, we provide premium solutions for Good to excellent credit profiles. 580 to 649: Fewer bank options, but direct lenders like regularly work in this range. Below 580: Challenging but not impossible. Some direct lenders evaluate the full picture.
The trend in 2026 is clear: lenders are moving beyond rigid credit score cutoffs. Even the SBA recently eliminated its mandatory FICO SBSS requirement for smaller loans. Direct lenders have been doing this for years.
4. Industry - Type Some industries are higher risk for banks (restaurants, construction, trucking, retail). RTMI Capital has funded 80+ industries. Industry alone should not disqualify you.
5. Documentation - Be prepared with: 3 to 6 months of business bank statements, government ID, business tax returns (1 to 2 years), proof of ownership, and a brief explanation of how you plan to use the funds. Direct lenders require less paperwork.
Speed: Banks take 30 to 90 days. Direct lenders often approve and fund within 24 to 48 hours. Flexibility: Banks follow rigid underwriting. Direct lenders look at cash flow, industry, growth trajectory, and overall business health.Approval rates: 74% of small businesses seeking fast working capital now use non-bank lenders.No middleman: Unlike marketplaces, a direct lender works with you from application through funding.
Equipment purchases (65% of small term loans in 2026), working capital, expansion, debt consolidation, and marketing/growth investments. Term loans give you capital upfront so you can act quickly when opportunity or necessity strikes.
- Keep your bank statements clean. Lenders review your recent deposits and withdrawals. Consistent revenue and minimal overdrafts signal a healthy business.
- Know your numbers. Be ready to articulate your monthly revenue, biggest expenses, and how the loan will help your business grow. Lenders appreciate borrowers who have a clear plan.
- Do not let a past denial stop you. Being turned down by a bank does not mean you will not qualify with a direct lender. The criteria are different, and the approval process is designed for real-world business owners, not just the ones with perfect credit.
- Apply with a direct lender first. If speed and flexibility are priorities, start with a lender that specializes in small business term loans rather than a bank or marketplace.
At RTMI Capital, we have built our business around making term loans accessible to the small business owners who need them most. With over $500M funded and 30,000+ transactions completed, we understand that every business is different and we underwrite accordingly.
Our process is fast, our team is responsive, and we do not hide behind algorithms. If you are ready to see what you qualify for, start your application today at rtmicapital.com or call our team to talk through your options.
You have built your business. Let us help you grow it.
RTMI Capital is a direct small business lender based in Miami, FL. We specialize in business term loans with fast funding, flexible terms, and a track record across 80+ industries.
