Time in Business

Time in business is how long a company has been operating — one of the core factors lenders use to judge financing risk. Most products set a minimum: revenue-based financing often accepts 4–6 months, lines of credit typically want 12+ months, and bank term loans and SBA loans usually expect 24+ months. Newer businesses aren't shut out — they're routed to the products built for them.

Lenders treat time in business as a proxy for stability and survival odds (a large share of new businesses close in their early years), so it sits alongside credit and revenue as a primary qualification factor. How it's measured varies by lender: some count from the business formation/registration date or EIN issuance, others from first revenue or the date the business bank account opened — which is why the same business can show a slightly different 'age' to different lenders. Typical minimums by product: revenue-based financing / merchant cash advance often accept 4–6 months; a business line of credit typically wants 12+ months; bank term loans and SBA 7(a) loans generally expect 24+ months with full documentation. These are network-level ranges, not promises — the actual bar depends on the lender and the rest of the file. Newer businesses still have paths: revenue-based products underwrite on recent deposits rather than tenure, SBA microloans (via nonprofit intermediaries) and CDFIs serve early-stage businesses, and strong personal credit can offset limited time in business. The Federal Reserve's Small Business Credit Survey (https://www.fedsmallbusiness.org/) documents how younger firms face tighter approval odds, and the SBA (https://www.sba.gov/funding-programs/loans) lists programs aimed at newer businesses. ClearValue Lending evaluates time in business alongside the full file and routes to the one partner whose minimum fits.

Examples

Frequently asked questions

How much time in business do you need for a loan?

It depends on the product: revenue-based financing often accepts 4–6 months, lines of credit typically 12+ months, and bank term loans and SBA loans usually 24+ months. These are network ranges — the rest of the file (credit, revenue) matters too.

How is time in business measured?

Lenders vary — some count from the business formation/registration date or EIN issuance, others from first revenue or when the business bank account opened. That's why the same business can present a different 'age' to different lenders.

Can a new business get financing?

Yes. Revenue-based products underwrite on recent deposits rather than tenure, SBA microloans and CDFIs serve early-stage businesses, and strong personal credit can offset limited time in business.

Related terms

Further reading