Small Business Funding – 11 Products Available Through Our Lender Network

Get your instant eligibility to see which types of small business funding products you qualify for from the list below.

Click the + signs below to learn about the pros and cons of each small business funding product, and understand how we determine your eligibility.

Our Funding Advocates can help you make a decision about which small business funding product is best for your business as well as provide loan application assistance.

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Small Business Funding Products

A/R and PO Financing - credit extension based on the value of invoices or purchase orders

A/R and PO Financing

Accounts receivable (i.e. unpaid customer bills) and purchase order financing are forms of asset-based lending – lenders will extend credit based on the value of your outstanding invoices, or the purchase orders you have from reputable business customers.

How We Determine Eligibility

Businesses with significant revenues will qualify for accounts receivables financing based entirely on the value of their unpaid customer bills. To qualify, the receivables should be bills to reputable customers who pay within 90 days. Profitability improves a business’ eligibility. Credit score is not a factor.

Pros

  • Provides working capital (to buy inventory, pay employees, and pay for day to day expenses) while you wait for your customers to pay you for the work you’ve done and/or the orders you need to ship
  • Useful for businesses with growing sales
  • Money available quickly – 14 days
  • Detailed business financials usually not required

Cons

  • Interest rates are high and they often charge additional fees – not sustainable as a long-term solution
  • Often requires a one-year contract with minimum monthly financing targets
  • Often times you are required to notify your customers and request that they pay bills owed directly to your lender

Asset-Based Loan - borrow money against the value of assets

Asset-based Loan

Asset-based lenders allow you to borrow money against the value of assets that other lenders might not consider, such as inventory, accounts receivable (i.e. unpaid customer bills), contracts, and purchase orders. Asset-based loan interest rates and fees are higher than bank rates, but more affordable than other alternative financing.

How We Determine Eligibility

Businesses with significant revenues will qualify for an asset-based loan based entirely on the value of their receivables (i.e. unpaid customer bills), inventory, or other assets. Profitability improves a business’ eligibility. Credit score is not a factor.

Pros

  • Provides working capital as soon as you bill your customers – so you don’t have to wait for payment
  • Useful for businesses with rapidly growing sales
  • You don’t have to notify your customers that you are borrowing money against their unpaid bills
  • Serves as a revolving loan, you can draw down funding as needed, pay interest only on the funds that you have drawn down, and repay the loan as you receive payments from customers

Cons

  • Interest rates are high and they often charge additional fees – not sustainable as a long-term solution
  • Often requires a one-year contract with minimum monthly financing targets
  • Detailed business financials are required
  • To draw down funding regularly, business needs to share updated financial statements with lenders (in particular information about unpaid customer payments and vendor bills)

Equipment Loan - equipment lease with buyout option

Equipment Loan

An equipment loan that works like a lease. The financing company buys the equipment, which allows you to benefit from new or used equipment for a much lower up-front cost, and typically has an option to purchase at a later date.

How We Determine Eligibility

To be eligible for an equipment loan borrowers must have at minimum an average/good credit score as well as some extra personal cash to make monthly loan payments. Businesses with revenue may qualify for an equipment loan with a lower credit score.

Pros

  • Finance the acquisition of a wide variety of new and used equipment – including technology, business systems, and vehicles
  • Qualify based on your strong credit and personal income alone
  • Easy process – no business financials required

Cons

  • High interest rate
  • Lender maintains ownership of the equipment and gives you option to purchase at the end of the loan
  • For startups and newer businesses, personal guarantee will be required

Merchant Cash Advance - up front cash in exchange for future credit/cash sales

Merchant Cash Advance

In a merchant cash advance loan, lenders provide you with cash up front in exchange for a portion of your future credit card or cash sales. This is a short-term, high-cost loan.

How We Determine Eligibility

If your business accepts a large portion of its revenues via credit card, or if you make frequent cash deposits every month, you are a candidate for merchant cash advance. Your personal credit does not affect your eligibility.

Pros

  • Very fast turnaround time
  • No personal collateral required
  • Most effective for e-commerce, retailers, restaurants, and mainstreet service businesses looking for capital to keep up with customer orders and sales activity

Cons

  • Interest rates are high –not sustainable as a long-term solution
  • Not appropriate for funding growth

Microloan - small loan from alternative lenders

Microloan

Microloans are small (<$50,000) loans that are intended for businesses whose revenue levels or credit profile make them ineligible for a traditional bank loan. They can be used for any business expense.

How We Determine Eligibility

Eligibility for a microloan is primarily based on your credit score and the amount of extra personal cash you have available to make monthly loan payments. Profitable businesses may be eligible based on their revenues alone.

Pros

  • Competitive interest rates and personalized service
  • Good resource for entrepreneurs looking to start a business that have personal income that comes from a source other than the startup business to pay back the loan
  • For existing businesses, great source of cash for small expansion projects, including new equipment or materials
  • Microlenders frequently offer complementary business support services

Cons

  • Loan amounts can be limiting, especially for low-credit borrowers
  • Personal collateral and guarantee required

Non Bank Community Lender Loan - secured loan from mission-driven, non-bank lenders

Non Bank Community Lender Loan

Non bank community lender loans are intended for start-up and existing businesses who may be higher risk borrowers because they have less than 2 years operating history and/or past challenges with their credit/cashflow, which typically makes them ineligible for a traditional bank loan. These loans can be used for any business expense.

How We Determine Eligibility

Eligibility for a non-bank community lender loan is primarily based on the business and/or personal cashflow that you have available to make monthly loan payments. Businesses with less than 600 credit scores, recent bankruptcies (within the last 2 years), and/or an account in collections will likely have challenges accessing these loans.

Pros

  • Competitive interest rates and personalized service
  • Good resource for entrepreneurs looking to start a business that have personal income that comes from a source other than the startup business to pay back the loan
  • Non bank community lenders frequently offer complementary business support services
  • May have a local presence with loan officers that live/work in and/or are very familiar with your community

Cons

  • Loan application process is typically not online
  • Loan processing time is typically long (30 to 45 days)
  • Personal collateral and/or guarantees are required

Online Non-Bank Lender - fast turnaround for short-term, high interest loan

Online Non-bank Lender

A non-bank loan is a short-term loan that provides businesses with a quick influx of capital at a high price. Non-bank lenders are known for using non-traditional criteria to qualify more businesses for loans. Many non-bank lenders have fast and easy online application processes.

How We Determine Eligibility

E-commerce businesses may qualify for an alternative lender despite relatively low revenues. Traditional businesses should qualify if you make frequent cash deposits every month, totaling a minimum of $10,000 in monthly sales.

Pros

  • Very fast turnaround time – money available in as few as 1-2 days
  • Personal guarantee required, but not personal collateral

Cons

  • Interest rates are high – not sustainable as a long-term solution
  • Interest and principal payments are automatically pulled from your bank account regularly until loan is repaid

Peer-to-Peer Loan - unsecured loan borrowed from individual investors

Peer-to-Peer Loan

A peer-to-peer loan is an unsecured loan (no collateral required) that you borrow directly from a group of individual and institutional investors online. Various companies operate web platforms to match you, the borrower, with interested investors.

How We Determine Eligibility

Your eligibility is based entirely on your personal financial profile: credit score and available cash. Your credit score needs to be at or above the average range, which is a higher cutoff than for a microloan.

Pros

  • Wide range of interest rate options for borrowers with average to excellent credit history
  • No restrictions on loan use
  • Easy application process – approval decision a couple minutes
  • Qualify based on your strong credit and personal income alone

Cons

  • Waiting period to receive your funding varies based on how quickly your loan request is funded
  • Requires a write-up about the purpose of the loan – sharing more information about yourself and the loan increases likelihood of funding

Peer-to-Peer Business Loan - secured loan borrowed from institutional or individual investors

Peer-to-Peer Business Loan

A peer-to-peer business loan is a secured loan (collateral required) that you borrow directly from a group of individual or institutional investors online. Collateral may include business assets like business receivables, equipment, commercial real estate or personal assets like a primary residence, investment property, investment/retirement portfolio, etc.. Various companies operate web platforms to match you, the borrower, with interested investors.

How We Determine Eligibility

Borrowers must have at minimum an average/good credit score. A business must be profitable and should have a track record of generating sales and profits for at least one year. 

Pros

  • Wide range of interest rate options for borrowers with average to excellent credit history
  • Loan must be used for business operations or expansion
  • Online application – approval decision within 24 hours
  • Qualify based on average credit and one year of profitability

Cons

  • For businesses with just one year of profitability and/or an average credit score, interest rates run high
  • Significant business and personal documentation must be submitted as part of the application process
  • Personal guarantee is required

SBA 504 Loan - government-backed loan for property

SBA 504 Loan

SBA 504 is a government-backed loan program for the purchase of business real estate, improvements to existing commercial property, and construction of new commercial facilities.

How We Determine Eligibility

To qualify for an SBA 504 Loan, borrowers must have at minimum an average/good credit score. A business must own or have plans to buy a commercial property, and must have a track record of generating sales and profits for at least one year.

Pros

  • Very competitive interest rates and large loan amounts available

Cons

  • Application process requires extensive documentation (personal and business financial information) and can be time-intensive
  • Commercial real estate collateral and personal guarantee required

SBA 7(a) Loan - government-backed loan for operations

SBA 7(a) Loan

SBA 7(a) is a government-backed loan program to help business owners expand, operate, or acquire a business.

How We Determine Eligibility

To qualify for an SBA 7(a) Loan, borrowers must have at minimum an average/good credit score. A business must be profitable and must have a track record of generating sales and profits for at least one year.

Pros

  • Very competitive interest rates and large loan amounts available

Cons

  • Application process requires extensive documentation (personal and business financial information) and can be time-intensive
  • Personal or business assets required as collateral
  • Personal guarantee required

SBA Express Loan - government-backed microloan

SBA Express Loan

SBA Express is a government-backed microloan program available to new and existing business owners.

How We Determine Eligibility

Eligibility for an SBA Express Loan is primarily based on your credit score and the amount of extra personal cash you have available to make monthly loan payments. Profitable businesses with average or better credit scores are eligible.

Pros

  • Good resource for entrepreneurs looking to start a business that have another source of income outside of their business to pay back the loan
  • For existing businesses, great source of cash for small expansion projects, including new equipment or materials
  • Easy application process – approval decision a couple minutes

Cons

  • Loan amounts can be limiting
  • Personal collateral and guarantee required

Traditional Bank Loan / Credit Line - loans for operations and/or expansion, typically at the lowest interest rates

Traditional Bank Loan/Credit Line

Bank loans are loans for general operations and expansion. They can also be used to purchase equipment, real estate, and another business. They are available to businesses with consistent revenues, profitability, strong credit profiles, and multiple years of operations.

How We Determine Eligibility

To qualify for a bank loan, borrowers must have at minimum a good credit score. A business must be profitable and have a track record of generating sales and profits for at least one year.

Pros

  • Best interest rates
  • Largest loan amounts
  • Flexibility to choose a loan that is paid back all at once (term loan) or a revolving credit loan (pay back only as you draw down money)
  • Easier access to a variety of additional bank services

Cons

  • Application process requires extensive documentation (personal and business financial information) and can be time-intensive
  • Personal or business assets required as collateral
  • Personal guarantee required