Funding options
Don’t know the product name? Tell me the job.
Most funding sites list a dozen products and leave you to work out which one you’re being sold. I’d rather start with what the business needs, explain the shape of money that fits it, and show the arithmetic on the same amount so you can compare honestly.
- Usually quickestHow it works and what it costs
Merchant cash advance
Priced on your sales, not just your credit.
- Draw as neededHow it works and what it costs
Business line of credit
Draw what you need, when you need it, and pay interest on what you drew.
- On the shelfHow it works and what it costs
Term loan
A lump sum, repaid on a fixed schedule.
- On the shelfHow it works and what it costs
Equipment financing
The truck, equipment or machine backs the request.
- Lower rates, more paperwork.How it works and what it costs
SBA loan
Government-backed.
- On the shelfHow it works and what it costs
Invoice factoring
Turns unpaid invoices into cash now.
A straight answer, even when it is not me. Every shape has its own page and calculator. Tell me the job on the form and I get your request to a partner who does that kind of financing. If none of mine do, I will say so.
Business funding only. Nothing here is a personal or consumer loan.
The two you’ll be offered first, side by side.
A line of credit and a cash advance are what most owner-operators hear about first, and they are priced most differently. Same $20,000, both ways.
| Business line of credit | Merchant cash advance | |
|---|---|---|
| What it is | Credit you draw on and repay, more than once | A purchase of a fixed amount of your future receivables |
| How it is priced | Interest on the drawn balance, plus any fees | A factor rate fixed at the start, plus any fees |
| How you repay | Weekly or monthly payments on what you drew | A daily or weekly debit, or a share of card sales |
| Illustrative cost of $20,000 | About $1,400 over six months at 24% a year | $6,000 at a 1.30 factor rate, remitting $26,000 |
| What underwriting leans on | Trading history, deposits, the owner’s credit | Deposits and card volume — whether the sales exist |
| Usually the better fit when | You can wait out underwriting and want the cheaper money | The need is immediate and cheaper credit is not open to you |
The cost row is an illustration on the same $20,000, not a quote. Amounts, rates and terms come from the funding partner and depend on what your file shows. I do not set them, and I cannot promise them.
Not sure which one you’re looking at?
Tell me about the business and roughly how much you’re after. I’ll get it in front of partners who work with businesses like yours, and they take it from there.