BUSINESS FUNDING

SHORT TERM

Short term loans allow for very fast funding so you get a lump sum of cash with a predetermined payment term. Payment is usually made daily, weekly or bi-weekly. The short term loan is best for business with high and consistent sales that are in need of quick unsecured cash to use however you need.
Pros: Cons:
  • Fast Capital in as little as24hr
  • Unsecured
  • Easy approval process
  • Little documentation needed
  • Cost of borrowing can be more

Best for:

  • Businesses that have high and consistent sales and bank deposits
  • Businesses that need financing right away

LONG TERM

Term loan is a common form of long term business funding. You get a lump some of cash upfront to invest in your business and repay with interest over a predetermined time period. Best for businesses looking to expand that have good credit and strong business revenue. Offers fast funding typically within 2 days to a week.

Pros:

Cons:

  • Get a lump sum amount of cash to invest in business.
  •  Borrow higher amounts
  • Get funding in 2 – 7 days
  • May require some type of collateral
Best for:
  • Businesses looking to grow
  • Business owners with better credit and consistent business who can’t wait for funding

BUSINESS LINE OF CREDIT

A line of credit gives you access to funds up to your credit limit which can be borrowed and paid back multiple times while only paying interest on the money you borrow. This is a flexible and typically unsecured way to borrow money for seasonal businesses or businesses that need help managing cash flow or handling unexpected expenses.

Pros:

Cons:

  • Flexible borrowing
  • Typically no collateral required
  • May have maintenance fee or withdrawal fee
  • Good credit and consistent revenue required
Best for:
  • Short term needs
  • Seasonal business to manage cash flow

SBA LOANS

These loans are guaranteed by the Small Business Administration because of this they offer some of the lowest rates on the market as well as long repayment terms and the ability to borrow up to $5 million. Repayment ranges from 7- 25 years based upon how you plan to use the money. SBA loans are best for strong credit borrowers who have been operating for 2 years and are willing to work on the long application process to expand their business or refinance debt.

Pros:

Cons:

  • Lowest rates on the market 
  • Borrow as much as $5 million
  • Longer repayment terms 7-25 years 
  • Long application process 
  • More qualifications required 

Best for:

  • Expanding businesses or refinancing debt
  • Business with good credit willing to wait for funding

EQUIPMENT FINANCING

Equipment loans help you purchase equipment with competitive rates if you have good credit and good finances. The equipment serves as collateral and the term is usually calculated off of the expected life span of the purchased equipment.

Pros:

Cons:

  • After payments complete you own the equipment
  • If you have good credit and strong finances you can get competitive rates.
  • May need a down payment
Best for:
  • Businesses in need of equipment with competitive financing rates.

WORKING CAPITAL / INVOICE FACTORING

Working capital when your business has unpaid customer invoices that you can’t wait to be paid. You can use invoices to get cash now. Best for businesses with unpaid invoices that need fast funding which is easier to get approved for compared to other similar options.

Pros:

Cons:

  •  Fast Cash
  •  Fairly simple and easy approval
  • Cost of borrowing may be high
Best for: Business with invoice that need cash right away Invoice with 30,60 or 90 day payment terms are best
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