Funding products
Compare the 5 main small-business funding products
Most small-business funding falls into one of five products. They differ in cost (10x range from cheapest to priciest), speed (24 hours to 90 days), and who qualifies (500 FICO to 700+). Pick the wrong one and you can overpay by tens of thousands. Below: definitions, real costs, top providers, and a plain-English guide to which one fits your situation in 2026.
Merchant Cash Advance (MCA)
Lump-sum advance repaid via a daily or weekly debit, priced as a factor rate (not APR).
Best for
Speed (24–72 hr funding), thin credit (500+), short-term cash gaps.
Cost
Factor 1.18 – 1.50 (≈ 30 – 120% APR-equivalent on a 6–18 month payback)
Speed
24 – 72 hours
Min credit
500+
Read the full guide →
Business Line of Credit (LOC)
Revolving credit you can draw from, repay, and re-draw — pay interest only on what you use.
Best for
Fluctuating capital needs, established merchants (12+ months, 600+ credit).
Cost
APR 6% – 30% (Bluevine, OnDeck); higher for thinner-file LOCs like Fundbox.
Speed
1 – 3 days
Min credit
600+
Read the full guide →
SBA Loan (7(a) / 504)
Government-guaranteed bank loan with the lowest APR in small-business lending and 10–25 year terms.
Best for
Established merchants (24+ months, 680+ credit) needing $250K–$5M+.
Cost
APR prime + 2.75% to 4.75% (currently ≈ 10.25 – 12.25%)
Speed
30 – 90 days
Min credit
680+
Read the full guide →
Equipment Financing
Term loan or lease secured by the equipment itself — lower rates than unsecured because the asset is collateral.
Best for
Buying titled or serial-numbered equipment ($25K–$500K+) — trucks, ovens, dental chairs.
Cost
APR 6% – 22% (bank-direct vs. fintech)
Speed
1 – 10 days
Min credit
550+
Read the full guide →
Invoice Factoring
Sell your unpaid B2B invoices to a factor for ~80–90% up front, then get the rest minus a fee when your customer pays.
Best for
B2B businesses with creditworthy customers on net-30 / net-60 terms.
Cost
0.5 – 4% per invoice (depends on customer credit, recourse vs non-recourse)
Speed
Same-day on verified invoices
Min credit
Customer credit matters more than yours
Read the full guide →
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Start matching →How these 5 products compare on cost
Cheapest to priciest, assuming you qualify: SBA loan (≈ 10–12% APR) → equipment financing (6–22% APR) → business LOC (6–30% APR) → invoice factoring (effective 15–45% annualized) → MCA (typical 30–120% APR-equivalent). The catch: each step up the price ladder usually means faster funding and lower qualifying bar, which is why MCAs exist at all.