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.
min credit score
At least 3 months
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.
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.
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.
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.
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.
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.
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.
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.