Business funding options compared
There is no single best way to fund a business. The right option depends on how fast you need the money, what it's for, and how long it will take to pay for itself. Here's how the six most common options compare.
| Option | Typical speed | Relative cost | Repayment | Best for |
|---|---|---|---|---|
| Merchant cash advance | Days | Highest | Daily/weekly debits or % of sales | Urgent, short-term needs with a quick return |
| Working capital loan | Days to weeks | Moderate to high | Fixed payments over a term | A defined cash-flow need |
| Line of credit | Days to weeks | Low to moderate | Pay on what you draw | Recurring, uneven cash needs |
| Equipment financing | Days to weeks | Low to moderate | Fixed monthly payments | Buying machinery, vehicles, tech |
| Invoice factoring | Days | Moderate | Repaid when your customer pays | B2B businesses waiting on invoices |
| SBA loans | Weeks to months | Lowest | Monthly, long terms | Established businesses planning ahead |
Three questions that narrow it down
1. How soon do you actually need it?
Speed is the biggest driver of cost. If you can wait a few weeks, cheaper options open up. If you need money this week, you're mostly choosing between a merchant cash advance, a fast online loan and factoring, so compare those carefully with our true-cost calculator.
2. Will the money pay for itself, and how quickly?
Match the term to the use. Inventory that sells in 60 days suits short-term money. A build-out that pays back over three years doesn't; put it on short, expensive funding and the payments arrive long before the returns.
3. Is the need one-time or recurring?
A one-time purchase fits a loan or equipment financing. Cash gaps that keep coming back fit a line of credit, which you can draw and repay over and over without reapplying.
Not sure which fits?
Tell us about the business. We will show you what you could qualify for and what each option really costs.
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