One way to potentially access cash on a short-term basis is a working capital loan. You could use the funds for a variety of things related to your day-to-day operating expenses or a new business opportunity for your existing company.
Starting at 6%
Estimated Apr
600
min credit score
At least 1 year
min $120,000
1.15 - 1.42
Factor Rate
500
min credit score
At least 6 months
$120,000
1.10-1.48 FR
Estimated Apr
500
min credit score
At least 6 months
No minimum
1.5% - 10%
Monthly Fee Rate
N/A
min credit score
At least 1 year
At least $50,000
5-35%
Estimated Apr
560
min credit score
At least 1 year
At least $100K
Equipment financing and equipment leasing can allow you to start using the equipment your business needs to generate revenue and pay it off over time. There can be options for all industries, from heavy construction machinery to medical equipment and everything in between. With the equipment itself serving as collateral, you might be able to get lower interest rates than you may see with unsecured business loans.
Starting at 6%
Estimated Apr
600
min credit score
At least 1 year
min $120,000
1.15 - 1.42
Factor Rate
500
min credit score
At least 6 months
$120,000
8–38%
Estimated Apr
560
min credit score
At least 3 years
At least $100K
Traditional term loans are installment loans that small businesses can use to help achieve various goals. Whether it’s a major equipment purchase or an expansion project, getting that extra infusion of working capital is something that many businesses could use at some point during their life cycle.
Starting at 6%
Estimated Apr
600
min credit score
At least 1 year
min $120,000
1.15 - 1.42
Factor Rate
500
min credit score
At least 6 months
$120,000
9.99-36%
Estimated Apr
600
min credit score
At least 2 years
No minimum
9-50%
Estimated Apr
550
min credit score
At least 1 year
At least $192K
1.5% - 10%
Monthly Fee Rate
N/A
min credit score
At least 1 year
At least $50,000
A Small Business Administration (SBA) loan is a government-backed loan that can guarantee billions of dollars each year. Under the SBA’s various loan programs, funds may be available for purchasing inventory or equipment, adding to working capital, buying commercial real estate, funding the acquisition of other businesses, or refinancing other debts in some cases.
Starting at 6%
Estimated Apr
600
min credit score
At least 1 year
min $120,000
6-10.25%
Estimated Apr
600
min credit score
At least 1 year
At least $500K
With strong personal credit, even first-time business owners may qualify for a loan to help with initial startup costs. Startup funding is available in the form of business credit cards, credit line builders, SBA loans, non-profit microloans, personal loans for business use, and more.
A business line of credit can give your company quick access to revolving credit. And though you may find business credit cards to be equally convenient, you might see lower interest rates, fewer fees, and more flexible repayment terms with a line of credit.
Starting at 6%
Estimated Apr
600
min credit score
At least 1 year
min $120,000
1.5% - 10%
Monthly Fee Rate
N/A
min credit score
At least 1 year
At least $50,000
14-40%
Estimated Apr
600
min credit score
At least 1 year
At least $100K
Like traditional term loan, short-term business loans can provide companies with working capital to overcome a financial hurdle, pay off higher-interest debt, or quickly jump on a great opportunity when it comes up. The main difference is that your short-term financing will need to be fully repaid soon, often within two years.
Starting at 6%
Estimated Apr
600
min credit score
At least 1 year
min $120,000
1.15 - 1.42
Factor Rate
500
min credit score
At least 6 months
$120,000
1.5% - 10%
Monthly Fee Rate
N/A
min credit score
At least 1 year
At least $50,000
With a Merchant Cash Advance (or MCA) a lender can buy a piece of your business’ future revenues and you'll receive the cash advance as a lump sum payment. Payments can fluctuate along with your sales volume, so you won't be stuck with a large payment you can't handle. Daily or weekly payments are sometimes drawn directly from the merchant account you use to process debit and credit card sales.
Starting at 6%
Estimated Apr
600
min credit score
At least 1 year
min $120,000
1.15 - 1.42
Factor Rate
500
min credit score
At least 6 months
$120,000
With invoice financing, you could pre-sell your unpaid invoices to another company in exchange for a lump sum payout. The accounts receivable financing service will retain a fraction of the value while they wait for your customer to pay. You can get the remaining funds owed when the customer has paid, minus the weekly fees that have accrued while waiting for payment. This can become very expensive, so it would be wise to use invoice factoring only with customers that you know will eventually pay.
Starting at 6%
Estimated Apr
600
min credit score
At least 1 year
min $120,000
N/A
Estimated Apr
530
min credit score
At least 3 months
At least $120,000
With a business acquisition loan, you could purchase a company that already has a successful history. You could also use acquisition financing to buy out your partner(s) in a business you already operate.
Starting at 6%
Estimated Apr
600
min credit score
At least 1 year
min $120,000
Small business loans have grown increasingly complex with a variety of financing options for every kind of borrower.
Let us make the process easier for you, so you can focus on your business.
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From quick short term funding to equipment financing, LendGenius is here to help connect you with a lender.
Setting out on a new venture? For borrowers with strong credit and collateral to pledge, startup business financing options may be available from a lender in the form of equipment underwriting, credit line builders, personal financing, non-profit microlending, credit cards, and SBA funding.
Not unlike a credit card, a line of credit could be used for just about any business expense you can think of. A business LOC from a lender can give you the same quick access to revolving credit, but in some cases with fewer fees, lower interest rates, and favorable repayment terms than you’d see with a generic credit card.
These options include any funding that is required to be fully repaid within 2 years. For example, accounts receivable financing and merchant cash advances fall under this category because they’re only meant to be used as a temporary cash flow fix.
These are the most common forms of small business financing. They are often used to finance expansions or other long-term growth activities, and they may have higher funding amounts with fixed payments to the lender spread out over an extended period of up to 5 years.
This option can allow you to start using the revenue-generating equipment you need immediately and pay it off over its estimated operating life. With the machine serving as collateral, the lender’s perceived risk is lower which means you might expect a better rate than you may get with other options.
A merchant cash advance could be all that stands between you and your next big move. A unique and flexible funding option, MCAs can get you the lump sum of cash you need without overextending your budget. Your payments to the lender would fluctuate along with your credit card sales volume, so you wouldn’t have to worry about a high payment during a bad period or seasonal fluctuations.
Invoice financing, also known as accounts receivable financing, is a way for you to get access to the money you’re owed from slow and overdue customers. You’ll have to take a hit on the factoring fee, but if approved you could have funds from a lender in your bank account within 24 hours.
The SBA provides low-interest financing via intermediary lenders. If approved, the Small Business Administration guarantees repayment in the event you default. Since the lender assumes less risk, he or she is also willing to grant more favorable terms. There are a number of programs for a variety of different situations, but they may impose limitations on how your funds are used.
Your financial advisor might tell you that mixing company finances with your personal credit is a risky move - but a little risk never stopped the determined entrepreneur. Using this option to fund your venture is a legitimate option, but it may complicate your accounting. On the plus side, this option may be a faster and easier way to fund a startup due to a relatively simple underwriting process.
The right small business credit card could help you effortlessly streamline your finances and operations. Use credit cards to build credit history, keep business expenses separate from your personal accounts, and to grow your company with ease. Of course, the best business credit cards and the most competitive rates are granted to business owners with strong credit scores. If that’s not you, you may want to consider a card with no annual fee that you pay off in full each month to start earning rewards on the necessary expenses you have to pay anyway.
Working capital is considered a form of short term financing because it normally requires full repayment in 2 years or less. Thus, it shouldn’t be thought of as a solution to chronic cash flow issues. Instead, you should use working capital towards improvements that will help you generate additional revenue in the short term, such as upgrading your tools, launching a marketing campaign, or hiring for a key role.
Perhaps you want to eliminate a competitor, buy a partner out, or maybe just take over your neighborhood corner store. In either case, you’ll want to look at business acquisition financing options to make the transition as smooth as possible.
