# Time in Business

> Time in business is how long a company has been operating, usually measured from its official start or registration date. Lenders use it to gauge stability and risk when reviewing a financing application.

## Key takeaways
- Time in business is how long your company has operated, usually measured from its legal formation or registration date, and lenders treat it as a signal of stability.
- Requirements vary widely: traditional and SBA loans often want two or more years, while some online lenders and merchant cash advances work with as little as six months.
- Newer businesses can still get financing, but should expect higher costs and possibly a personal guarantee.

## What time in business means

**Time in business** is simply how long your company has been operating. Lenders
treat it as a quick signal of **stability**: a business that has survived several
years has shown it can handle ups and downs, while a brand-new business is harder
to evaluate and statistically riskier to lend to.

Most lenders measure it from the date your business was **legally formed or
registered**, though some count from when you opened a **business bank account**
or first generated revenue.

### Why lenders care

Alongside revenue and credit, time in business is one of the core factors in a
financing decision. A longer track record generally means:

- **Easier approval** and access to more products.
- **Lower rates**, because the lender sees less risk.
- **Larger amounts** and longer terms.

### Common minimums

Requirements vary widely by product:

- **Traditional bank and SBA loans** often look for **two or more years**.
- **Online lenders** and **lines of credit** may require around **one year** or
  **six months**.
- **Merchant cash advances** and some short-term products can work with as little
  as **six months** of history.

### A quick example

A business operating for **three years** with steady revenue will usually qualify
for more — and cheaper — options than one that opened **four months** ago, even if
their monthly sales are similar.

### What to watch for

If you're a newer business, you can still find financing, but expect **higher
costs** and possibly a **personal guarantee**. Building **time in business**
alongside **revenue** and **business credit** steadily widens your options. Hoss
Capital can match you with lenders whose time-in-business requirements fit where
your company is today.

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