Business funding center

How to get money for your business

Every way an independent business gets funded, explained in plain English. Find what fits your business, see what lenders look for, and run the numbers before you sign.

What do you need the money for?

Payroll, inventory, billsWorking capital · Line of credit Equipment or vehiclesEquipment financing Waiting on customer invoicesInvoice factoring Cash fast, strong salesMerchant cash advance · Revenue-based Stuck in an advanceBuyout and consolidation Lower credit scoreRevenue-based options Buying equipmentTrucks, machinery, kitchens Too many daily paymentsMCA refinance

Compare the main options

Option	Best for	Speed	Credit	Repayment
MCA buyout	Businesses carrying one or more advances	Often days	Deposits matter most; credit weighs less	One payment replacing several
Working capital	Inventory, payroll, seasonal gaps	Often days	Fair credit and up; revenue matters most	Fixed daily, weekly or monthly payments
Business line of credit	Uneven cash flow, ongoing needs	Fast to set up; instant to draw	Fair to good credit usually	Pay on what you use
Merchant cash advance	Fast cash, strong card or bank sales	Often within days	Flexible; sales matter most	Share of sales or fixed daily/weekly
MCA refinance & consolidation	Businesses with one or more MCAs	Often days	Depends on revenue and payment history	One new payment schedule
Revenue-based financing	Consistent revenue, limited credit history	Often days	Flexible; revenue matters most	Fixed daily or weekly payments
Equipment financing	Vehicles, machinery, kitchen and medical equipment	Days to a couple of weeks	Fair credit and up	Fixed monthly payments
Invoice factoring	B2B businesses waiting on invoices	Often days	Your customers' credit matters more	Paid when your customer pays

General guidance; every lender and business is different.

Where to get money

Where to get a business loanOne requirement matters more than any other: you have to have a real business with revenue coming in. Here is what is available once you do, how fast each option funds, and how to pick the right one. Alternative business financingWhen a bank says no, or can't move fast enough, these are the options businesses actually use, what each costs you in practice, and who each one fits.

Funding types

MCA buyoutA buyout is when a new funder pays your current advance off directly and replaces it with one position. It is how businesses get out from under daily payments they can no longer carry. Working capitalWorking capital funding covers the money a business needs to run day to day: payroll, inventory, rent and the gap between paying bills and getting paid. Business line of creditA line of credit gives your business a limit to borrow from, repay and borrow again. Here is how it works, what it costs you in practice and how to qualify. Merchant cash advanceA merchant cash advance gives you cash now in exchange for a share of future sales. It's fast and credit-flexible. Here is how to use one wisely. MCA refinance & consolidationIf daily payments from one or more merchant cash advances are squeezing your cash flow, refinancing or consolidating can lower the pressure. Here is how it works. Revenue-based financingRevenue-based financing sizes funding to how much your business brings in. Here is how it works, how it differs from a merchant cash advance, and who it fits. Equipment financingEquipment financing lets the equipment secure the deal, so it can be easier to qualify for than an unsecured loan. Here is how it works and what to prepare. Invoice factoringIf your business bills other businesses and waits 30, 60 or 90 days to get paid, factoring converts those invoices into cash today. Here is how it works.

By situation

Help with stacked advancesThree or four daily debits against the same deposits is how a profitable business runs out of cash. Here is what the options actually are, in the order worth trying them. Business loans with bad creditA low credit score closes some doors, not all of them. These funding types focus on the money moving through your business.

Compare your options

Working capital vs line of creditA working capital loan is one lump sum with a fixed payoff. A line of credit is a limit you draw against and pay for only what you use. The right answer depends on whether your need is one thing or a recurring gap. MCA vs business loanAn advance is faster and easier to qualify for. A loan is cheaper. The gap between them is wider than most comparison pages admit, and the term is what decides it. Factoring vs line of creditFactoring is underwritten on your customers. A line of credit is underwritten on you. If your customers are stronger than your balance sheet, factoring usually wins. Financing equipment vs paying cashPaying cash avoids the cost of borrowing. It also empties the account that covers payroll in a slow month. The right answer depends on what else that cash has to do. Who actually lends?Ten of the biggest names in small business funding, sorted by what they really are, quoted from their own legal disclosures. This decides how many phone calls you get. LendioLendio is not a lender. It is a marketplace that forwards your application to a network. That is not a criticism, but it changes what you should expect. OnDeckTwo products, tight requirements, and an average APR of 53.2% that it prints on its own website. Expensive money, honestly labelled. LendingTreeLendingTree is a registered marketing lead generator, not a lender. Its own terms say so. Here is what that means for your phone. FundboxUp to $250,000, a decision in minutes, and a pricing page that now redirects to the homepage. That last part is the story. BluevineTwo different banks doing two different jobs, a term loan that is actually brokered, and the highest complaint count in this group. KapitusLarge amounts, a two-year minimum, and pricing it describes as not technically being a rate. Recently acquired. CrediblyThe clearest fee disclosure of any advance funder we looked at, and requirements its own pages cannot agree on. Fora Financial1.13 to 1.50, in writing, on its own site. In a market that publishes floors and nothing else, that is worth something. Rapid FinanceEight products from $5,000 to $10 million, funded under its own licences, and not a single rate or fee anywhere on the site. National FundingA page headlined "Business Loans from a Direct Lender" sits above terms disclosing referrals and a broker licence. Both are on its own site.

Questions owners actually ask

Will applying hurt my credit?Usually not at the first step. Most revenue-based funders start with a soft pull, which does not affect your score. The damage comes from applying everywhere at once. What is a factor rate?A factor rate is a multiplier, not an interest rate. 1.30 on $50,000 means you repay $65,000. Because it is repaid fast, the true annual cost is far higher than the number suggests. What lenders see in your bank statementsDeposits, negative days, and payments to other funders. An underwriter reads three to six months of statements in about ten minutes, and this is the order they look in. Funding with an existing MCAYes. Businesses with an existing advance get funded every day. The route that usually works best is refinancing or consolidating what you already have rather than adding another payment on top. Why was I declined?Most declines come down to six things, and four of them are fixable within 30 to 90 days. Here is how to find out which one it was. How much can I borrow?For revenue-based funding, the usual starting point is a fraction of one month of deposits. Here is the arithmetic, and what moves the number up or down. How fast can I get funded?Same day is real for some products and marketing copy for others. Here is what each one actually takes, and what makes yours slower. What documents do I need?For most revenue-based funding it is shorter than people expect. Here is the standard list, what gets asked for next, and what nobody should be asking you for. What credit score do I need?Lower than most owners think for revenue-based products, and higher than they hope for a bank. What the score really controls is price, not the answer. Can they take my house?Almost always no, and the confusion between a personal guarantee, a lien and collateral costs owners real money. Here is what each one actually does. What is a UCC filing?It is a public notice, not a debt. But a blanket filing from a previous funder is one of the most common reasons a good application gets declined. Can I pay off an MCA early?You can always pay it off. Whether you save anything depends on one clause, and the answer is usually less than you assume. What if I miss a payment?One bounced debit is a phone call. A pattern is a default. The difference is almost entirely in what you do in the first 48 hours. Under a year in business?Yes, from six months, and the options narrow sharply below that. What changes is price and size, not whether anyone will look at you. What is a holdback rate?It is the percentage of your daily sales the funder takes. It decides how fast you repay, and it is the number people ignore while arguing about the factor rate. Tax lien or judgment?Often yes. A payment plan changes almost everything, and an unaddressed lien changes almost nothing in your favour. Is my industry restricted?Every funder keeps a restricted list. Most owners never see it and waste weeks finding out the hard way. Here is roughly what is on it and why. What does a broker charge?Usually the funder pays, out of your deal. Which means you pay, just not on an invoice. Here is how to see it. Why 3 different offers?Same statements, same revenue, wildly different numbers. It is not random, and understanding why tells you which offer to take. Do I need collateral?For most revenue-based funding, no. Your deposits are the security. Here is what each product actually secures against. Will they call my customers?Yes, and that is the part owners worry about most. Here is what they actually say, and what non-notification factoring changes.

How to think about a decision

Should I raise prices?The arithmetic almost nobody does: how many customers you can afford to lose, and why the answer is usually far more than you fear. Debt, equity or bootstrap?Three ways to fund growth, three completely different costs. The expensive one is usually not the one owners think. Open a second location?The second location is where profitable independent businesses most often go wrong. Five tests before you sign a lease. Franchise or independent?A franchise sells you a shortcut. Work out what the shortcut costs per year, and whether you were going to need it. Reading the economic calendarMost of it does not matter to you. Four releases do, and they move the cost of your money, your labour and your inventory.

Funding by industry

Gyms & fitness studiosFunding for equipment, build-outs, expanding floor space, marketing before the January rush, and covering the slow summer months. Childcare & daycareFunding for licensing and compliance work, playground and classroom equipment, staffing before tuition arrives, and expanding capacity. Laundromats & dry cleanersFunding for washers, dryers and boilers, card systems, store refreshes, and utility costs. Bars & nightlifeFunding for inventory, licensing, sound and lighting, patio build-outs, and the gap between slow weeks and busy ones. Coffee shops & cafesFunding for espresso machines and grinders, build-outs, a second location, and inventory ahead of a season. BakeriesFunding for ovens, mixers and refrigeration, ingredient costs, wholesale expansion, and holiday production runs. Food trucksFunding for the truck itself, kitchen equipment, permits, commissary fees, and event deposits. Grocery & convenience storesFunding for inventory, coolers and shelving, point-of-sale systems, and covering slow weeks. Liquor storesFunding for inventory ahead of holidays, licensing, coolers and security, and store improvements. Pet grooming, boarding & supplyFunding for grooming equipment, kennel build-outs, vehicles for mobile grooming, and inventory. Veterinary clinicsFunding for imaging and surgical equipment, practice build-outs, software, and the wait on pet insurance reimbursements. PlumbingFunding for trucks and trailers, tools and camera equipment, payroll between progress payments, and material costs. ElectriciansFunding for vehicles and tools, materials for larger jobs, payroll before progress billing, and licensing. HVACFunding for trucks, equipment and tools, seasonal inventory, and payroll through the shoulder seasons. RoofingFunding for materials on large jobs, crews and equipment, insurance work that pays slowly, and storm-season capacity. Cleaning & janitorialFunding for equipment and supplies, vehicles, payroll on commercial contracts, and expanding routes. Moving & storageFunding for trucks and trailers, fuel and insurance, seasonal staffing, and facility costs. Photography & videoFunding for cameras, lenses and lighting, studio space, editing systems, and the wait on commercial invoices. Print shops & signageFunding for presses and large-format printers, materials, vehicles for installation, and commercial receivables. Spas & wellnessFunding for treatment equipment, build-outs, product inventory, and marketing to fill the calendar. Security servicesFunding for vehicles and equipment, uniforms and licensing, and payroll on contracts that bill monthly. Medical practicesFunding for diagnostic and treatment equipment, office build-outs, practice software, and the wait on insurance reimbursements. RestaurantsFunding for kitchen equipment, renovations, inventory ahead of busy seasons, a second location, catering or a food truck. TruckingFunding for trucks and trailers, fuel, repairs, insurance, and the wait for brokers and shippers to pay. ConstructionFunding for equipment, materials, payroll before progress payments arrive, and bonding requirements. Medical & dental practicesFunding for imaging and treatment equipment, office build-outs, technology and the wait for insurance reimbursements. Retail storesFunding for inventory, seasonal stocking, store improvements and point-of-sale systems. Salons, barbers & spasFunding for chairs and stations, renovations, product inventory and marketing. Auto repair shopsFunding for lifts, diagnostic tools, parts inventory and bay expansions. Landscaping & home servicesFunding for trucks, trailers, mowers and equipment, seasonal payroll and marketing.

Business funding by state

What it takes to get funded where you operate, with each state's independent business base.

Business funding by city

The 150 US cities with the largest independent business bases, each with that city's own business mix. Funders price on your revenue rather than your zip code, but what your city is made of decides which products come up most.

How these businesses actually run

Funding is one decision. These are the operating playbooks for the same businesses: the cost structure, the number operators watch weekly, and what actually goes wrong.

Tools

Business loan & MCA calculatorsEstimate monthly payments, or see the true total cost of a cash advance before you sign.