- 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.
Frequently asked
How is time in business measured? +
Most lenders count from the date your business was legally formed or registered, though some use the date you opened a business bank account or began generating revenue. Requirements are usually stated in months or years.
How much time in business do lenders require? +
It varies by product. Many traditional and SBA loans look for two or more years, while some online lenders and merchant cash advances work with businesses that have as little as six months of operating history.
Can a new business still get financing? +
Yes, though options are more limited. Newer businesses may rely on startup financing, strong personal credit, a personal guarantee, or products with lower time-in-business minimums.
Last updated: June 2026