CAPITAL GROUNDWORK
Types of Business Funding for Small Businesses
The best financing structure depends on what the capital needs to do. Start with the use of funds, then compare repayment, cost, flexibility, security, timing, and eligibility.
Term loans
A defined amount of borrowed capital repaid over an agreed period. Often suited to a specific, identifiable funding need.
Business lines of credit
A credit facility that may allow draws up to an approved limit under the agreement. Often considered for recurring or variable needs.
SBA-backed financing
Participating lenders originate loans under applicable SBA program rules. Programs serve different purposes and have different requirements.
Equipment financing
Financing tied to business equipment. Compare down payment, term, cost, security interest, and ownership/end-of-term provisions where applicable.
Invoice-based and other financing
Some businesses may use invoice-based, asset-based, or specialized working-capital structures. Understand exactly what is borrowed against, sold, pledged, or guaranteed.
FREE CHECKLIST
Thinking about business funding?
Organize your funding goal, financial information, documents, credit considerations, and questions before you compare financing.
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