Business Funding Options for U.S. Small Businesses
Every financing structure we work with, what each one is designed to solve, and how to tell which fits your situation.
What is business funding?
Business funding is capital provided to a business for operating or growth purposes, delivered through structures that include loans, revolving credit facilities, purchases of future receivables and revenue-share agreements.
The label matters less than three characteristics: what it costs in total, how repayment behaves when revenue changes, and what the provider requires before approving it. Those three factors are what separate a structure your business can carry from one that creates a second problem.
Broadly, faster and more accessible financing costs more. Cheaper financing requires stronger documentation and more time. Most business owners are choosing a point on that trade-off rather than finding a product that is best on every dimension.
Compare financing structures
Eight structures, each suited to a different problem.
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Working Capital
Financing used to cover day-to-day operating costs — payroll, rent, suppliers and inventory — when revenue and expenses fall out of step.
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Merchant Cash Advance
A purchase of a portion of your future sales, repaid as a share of daily or weekly receipts rather than a fixed monthly instalment.
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Business Line of Credit
A revolving credit limit you draw from as needed and repay, with interest charged only on the balance you actually use.
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Business Term Loans
A lump sum repaid in scheduled instalments over a fixed period — the most predictable way to fund a defined, one-time investment.
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SBA Loans
Bank financing partially guaranteed by the U.S. Small Business Administration, offering longer terms for businesses that can meet the documentation requirements.
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Equipment Financing
Funding tied to a specific machine, vehicle or system, where the equipment itself usually serves as the collateral.
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Business Debt Consolidation
Combining several business obligations into a single financing arrangement to simplify payments and, in some cases, reduce what leaves the account each week.
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Revenue-Based Financing
Capital repaid as an agreed percentage of monthly revenue, so the payment rises in strong months and eases in slow ones.
Which structure fits which situation?
| If your situation is… | Consider | Why |
|---|---|---|
| A short gap between paying costs and collecting revenue | Working capital | Covers operating costs without committing to a long-term obligation |
| A gap that recurs several times a year | Line of credit | Reusable, and you pay only for the days funds are drawn |
| Urgent, with strong daily card sales | Merchant cash advance | Reviewed mainly on deposits, so it moves faster than most alternatives |
| A single defined project with a known cost | Term loan | Fixed payments and a fixed end date make it easy to plan around |
| A large, long-payback investment such as property | SBA loan | Longer amortisation lowers the payment, at the cost of a longer process |
| Buying a specific machine or vehicle | Equipment financing | The asset secures the transaction, so terms are often better than unsecured borrowing |
| Several payments competing for the same deposits | Debt consolidation | Replaces multiple obligations with one schedule |
| Revenue that varies significantly month to month | Revenue-based financing | Payments scale with performance rather than staying fixed |
The four questions that narrow the field
How quickly do you need capital?
Days points toward revenue-based products. Weeks opens up lines of credit, term loans and SBA financing at lower cost.
Is the need one-off or recurring?
A single event suits a fixed-term structure. A repeating need almost always suits a revolving facility.
How predictable is your revenue?
Steady revenue supports fixed instalments. Variable revenue is safer with a structure that flexes.
What documentation can you produce today?
Bank statements alone limit the options. Current financials and filed tax returns open cheaper structures.
How to compare any two offers
Products use different vocabularies. Reducing every offer to the same three figures makes them directly comparable.
- Total dollars repaid — every dollar leaving the business, including all fees
- Payment amount and frequency — what is debited, and how often
- Duration — how many weeks or months the obligation continues
- Fees deducted before funding — the difference between the amount approved and the amount received
- Prepayment terms — whether repaying early reduces the total owed
- Personal guarantee — whether, and to what extent, you are personally responsible
Funding by industry
Industry-specific pages covering the timing problems, financing uses and documentation each sector involves.
Ready to explore your funding options?
Start your application and see what financing solutions may be available for your business.