Funding Answer
Business Loans at 1 Year in Business: What You Qualify For
By Closer Capital Reviews · Last updated August 2026 · How we make money
Closer Capital Reviews is a compensated Closer Capital affiliate. We are not Closer Capital, and Closer Capital did not write this page.
One year in business is the line where the business itself becomes fundable rather than you personally. It is Closer Capital's stated baseline, alongside 600+ credit and $100K+ in annual revenue, and it is roughly where the wider alternative market opens up. Banks generally want two years and an SBA file requires it.
What one year buys you is access to the shorter, faster products: a business line of credit and, with the revenue to match, a term loan. What it does not buy is the cheap, long money. SBA loans require 2+ years of operating history, equipment financing states 2 years unless your credit is strong, and commercial lending wants 2+ years and $2M+ in revenue.
If you are under 12 months, say it plainly: Closer Capital is likely not the fit yet, and the one exception is personal loan funding, which is underwritten on your personal credit rather than on business history. The honest path is covered further down this page.
The short answer, side by side
Time in business is the cleanest dividing line in small business lending. Here is what a 12-month-old company faces on each side of it.
| Time in business question | Traditional bank | Alternative lenders, including Closer Capital |
|---|---|---|
| Minimum operating history | Roughly 2 years, and 2+ years is a hard requirement on SBA files | 6 to 12 months is typical. Closer Capital's baseline is 1+ year |
| Revenue expected at that age | Two full years of tax returns and financial statements | $100K+ annual revenue, verified through 3 to 6 months of bank statements |
| Credit expected | 680+ and a debt service coverage ratio near 1.25 | 600+ as a starting point, read in context by a person |
| Decision time | 1 to 4 weeks, and 4 to 12 weeks on SBA | 24 to 72 hours on a line of credit or term loan |
| Typical amount at year one | Usually a decline, or a small secured facility | Commonly 10% to 20% of annual revenue on a line, 10% to 30% on a term loan |
| Documents required | Two years of returns, P&L, balance sheet, cash flow, business plan | Bank statements, ID, voided check, formation documents. Tax returns only on term loans and above |
Bank figures are general industry standards. The alternative lender column uses Closer Capital's published program ranges.
What 12 months actually unlocks, program by program
Closer Capital's site-wide baseline says 1+ year in business, but each of its seven programs carries its own published requirement, and three of them ask for more than a year. That mismatch is worth understanding before you apply, because it decides which offer you can realistically expect.
Read this table as the answer to the real question, which is not whether you can get funded at 12 months but which product will fund you.
| Program | Published time in business | Realistic verdict at 12 months |
|---|---|---|
| Business line of credit | 6+ months, 12+ preferred | Yes. The best fit at exactly one year |
| Business term loan | 1+ year, 2+ preferred for larger amounts | Yes, if you also clear $250K+ revenue and 650+ credit |
| Equipment financing | 2 years, or 1 year with strong credit | Possible with strong credit, because the equipment secures it |
| Real estate lending | Not time-gated. 640+ credit, 10% to 30% down, 6 to 12 months of reserves | Possible on investment property if you have the down payment |
| Personal loan funding | No business history required at all | Yes, but you are personally liable and need 660+ credit |
| SBA loans | 2+ years, with limited startup exceptions | No |
| Commercial lending | 2+ years and $2M+ in annual revenue | No |
Requirements are the published eligibility for each program. The funding partner that takes your file makes the final call.
The pattern is consistent: at 12 months, the fast unsecured money is available and the cheap long money is not. A line of credit approves in 24 to 72 hours with draws landing by ACH usually within one business day. An SBA loan at prime plus 2% to 3% over 25 years is a year away from being an option for you.
How much a one-year-old business can actually borrow
Time in business gets you in the door. Revenue decides the size of the check. Lenders commonly approve a line of credit at 10% to 20% of annual revenue and a term loan at 10% to 30%, and Closer Capital's funding floor across all programs is $25,000.
That floor matters more than people expect at year one. A business that just cleared 12 months with the baseline $100,000 in annual revenue is mathematically looking at $10,000 to $30,000, which brushes against the bottom of what Closer Capital funds at all. The businesses that get comfortable approvals at year one are the ones with revenue well above the baseline.
| Annual revenue | Line of credit at 10% to 20% | Term loan at 10% to 30% | Practical read |
|---|---|---|---|
| $100,000 | $10,000 to $20,000 | Term loans start at $250K revenue | At or below Closer Capital's $25,000 funding floor |
| $250,000 | $25,000 to $50,000 | $25,000 to $75,000 | First revenue level where both products are live |
| $500,000 | $50,000 to $100,000 | $50,000 to $150,000 | Comfortable range for a $50K to $100K request |
| $750,000 | $75,000 to $150,000 | $75,000 to $225,000 | Closer Capital's own worked example sits here |
| $1,500,000 | $150,000 to $300,000 | $150,000 to $450,000 | Amount stops being the constraint |
Sizing percentages are the published ranges Closer Capital cites for each program. Actual limits are set by the funding partner.
What year-one money costs
A 12-month-old business is priced as a higher risk than a 5-year-old one on identical revenue, because there is less history to underwrite. Expect to land in the upper half of every published band.
On a business line of credit that band is 12% to 45% APR over 6 to 24 months, with interest charged only on what you actually draw. On a term loan it is 8% to 35% APR over 12 to 36 months, plus a 2% to 5% origination fee taken off the top. Equipment financing is the cheapest non-SBA option at 6% to 30% over 12 to 84 months, and it is easier to approve at year one because the asset is the collateral.
The short term is the part that bites. Closer Capital's own worked example is a $150,000 term loan at 18% over 36 months: roughly $5,434 a month, about $195,624 repaid, about $45,624 in interest, on a retail business doing $750,000 a year. Note that the monthly payment is driven as much by the 36-month term as by the rate. A year-one business that takes a 12-month term instead will feel a payment three times that size on the same principal.
- Model the payment against your worst month, not your average. Year-one revenue is rarely smooth.
- On a line of credit you pay interest only on drawn funds, which is why it is usually the right first product at 12 months even at a higher headline rate.
- Origination fees of 2% to 5% mean the amount that lands in your account is smaller than the amount you repay.
- Confirm any prepayment penalty in writing. Where they apply, they commonly run 2% to 5% of the remaining balance.
How to improve your odds at exactly 12 months
At the one-year mark you are on the edge of several thresholds, and small moves change which side of them you land on. The goal is to look like a 24-month business in the only place the underwriter actually looks: your bank statements.
If your need is not urgent, waiting is a legitimate strategy. Month 13 to month 24 is the single most valuable stretch in small business credit, because it moves you from the minimum tier into the preferred tier on nearly every program on this menu.
- Get 6 clean months of business bank statements with no negative days. This is the core document and it is the fastest thing you can fix.
- Consolidate deposits into the business account. Revenue split across a personal account does not count toward the $100K baseline in any lender's eyes.
- Avoid taking a second position. Competing daily debits from another funder are visible in the statements and they close doors quickly.
- Match the product to the purpose. Buying a truck at 12 months is an equipment financing application, not a line of credit draw, and it prices 6% lower at the floor.
- Ask for a number your revenue supports. A request at 15% of annual revenue reads as competent. A request at 60% reads as distress.
- Have the file ready: 3 to 6 months of bank statements, driver's license, voided business check, formation documents, EIN. Closer Capital approves in 24 to 72 hours, and the biggest delay is almost always the applicant, not the underwriter.
If you are under a year in business: the honest answer
If your business is under 12 months old, Closer Capital is probably not the fit today. The baseline is 1+ year with $100K+ in annual revenue, six of the seven programs are underwritten on business performance, and no amount of application polish substitutes for operating history that does not exist yet.
There is one genuine exception on the menu. Personal loan funding is underwritten on your personal credit score, documented income, and a debt-to-income ratio under 45%, not on business revenue. It goes up to $250,000 with a 0% promotional interest period, then converts to roughly 6% to 29% APR over 12 to 84 months, and it typically funds within 1 to 5 business days. It requires 660+ credit, and the tradeoff is real: you sign personally, it hits your personal credit utilization, and if the business stalls the debt does not.
The other honest options at under a year are outside any single broker: vendor or manufacturer financing on equipment purchases, business credit cards, and simply timing the application for the month you cross 12. Set a calendar reminder for month 13 with six months of clean statements behind you, and you walk into a materially different conversation.
- Under 6 months in business: no business program here opens. Focus on revenue and clean banking.
- 6 to 11 months: the line of credit states 6+ months and prefers 12+, so it is possible but you are the exception rather than the rule.
- Exactly 12 months and up: you clear the baseline. The question shifts from time to revenue.
- Any age, if the money buys an asset: equipment financing states 2 years but allows 1 year with strong credit, because the collateral offsets the history.
Where Closer Capital fits at one year in business
Closer Capital's stated baseline is built for exactly this borrower: 1+ year in business, $100K+ in annual revenue, 600+ credit, and funding from $25,000 to $5,000,000 across seven programs. Closer Capital also says it can fund in as little as 24 hours after approval and that it took over 700 applications from business owners in 2024.
It is a brokerage rather than a direct lender, so the program requirements below are what decide your outcome. One prequalification is read against all seven.
Company claim
Closer Capital states $1M approved in a single day.
Source: Closer Capital marketing material. We have not independently verified this figure.
The honest caveat
Do not waste weeks on the wrong door. SBA loans require 2+ years of operating history and prefer 680+ credit, and commercial lending requires 2+ years plus $2M+ in annual revenue. Neither is available to a 12-month-old business, regardless of how strong the story is. If you are under a year, personal loan funding is the only program here that does not need business history, and it puts the liability squarely on you personally.
People also ask
The related questions searchers ask about business loan 1 year in business, answered straight.
Can I get a business loan with only 1 year in business?
Yes. One year is the stated baseline at Closer Capital and roughly the entry point across alternative lending. At 12 months the realistic products are a business line of credit, which states 6+ months and $10,000+ in monthly revenue, and a term loan if you also clear $250,000 in annual revenue and 650+ credit. Banks generally want about two years, and SBA loans require 2+ years, so those doors stay closed until year two.
What is the minimum time in business for Closer Capital?
The site-wide baseline is 1+ year in business, paired with $100K+ in annual revenue and 600+ credit. Individual programs differ: the business line of credit states 6+ months with 12+ preferred, term loans state 1+ year, equipment financing states 2 years or 1 year with strong credit, and both SBA and commercial lending require 2+ years. Personal loan funding requires no business history at all.
Can I get business funding with 6 months in business?
Possibly, through the business line of credit, which publishes a 6+ month minimum while preferring 12+ months, alongside $10,000 in monthly revenue and 600+ credit. You are the exception rather than the rule at that age, and pricing will sit toward the top of the 12% to 45% band. Six clean months of business bank statements with no negative days is what makes that application viable.
Does time in business or revenue matter more?
Time in business decides whether you get read. Revenue decides the size of the check. Once you clear the 12-month bar, lenders commonly size a line of credit at 10% to 20% of annual revenue and a term loan at 10% to 30%, so a business doing $500,000 a year is realistically looking at $50,000 to $150,000. Below the time-in-business minimum, strong revenue does not usually override the requirement on business-underwritten programs.
How much can a 1-year-old business borrow?
Typically 10% to 20% of annual revenue on a line of credit and 10% to 30% on a term loan. At Closer Capital's $100K revenue baseline that is roughly $10,000 to $30,000, which sits at or below its $25,000 funding floor, so realistically you want revenue meaningfully above the baseline. At $500,000 in revenue the same math produces $50,000 to $150,000.
What should I do if my business is under a year old?
Be honest that most business-underwritten programs will decline you, and pivot to the one that does not. Personal loan funding is approved on your personal credit score, income, and a debt-to-income ratio under 45%, goes up to $250,000 with a 0% promotional period, and funds in 1 to 5 business days. It requires 660+ credit and puts the liability on you personally. Otherwise, spend the remaining months building clean business bank statements and apply the month you cross 12.
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About this answer
Maintained by Closer Capital Reviews, a review site that participates in Closer Capital’s affiliate program (see ouradvertising disclosure). We are not Closer Capital. Program amounts, rate ranges, terms, timelines, and eligibility on this page were taken from the published program details on closercap.com and cross-checked against our ownprogram reviews. Figures attributed to banks or to the wider market are general industry standards, not quotes from any named lender.
Closer Capital is a funding brokerage rather than a direct lender, so the final rate, term, and fees on any offer are set by the funding partner that takes your file and can change at any time. Nothing here is a quote, an offer, or financial advice. Confirm your numbers in writing before you sign. Spot something out of date? Emailinfo@closercapitalreviews.com.
Last updated August 2026