1. SBA Loans (Small Business Administration Loans)

SBA loans are government-backed loans designed to support small businesses. These loans often come with lower interest rates and longer repayment terms. They are ideal for businesses looking for affordable long-term financing. SBA loans typically include:

• 7(a) Loan Program: The most common SBA loan used for working capital, expansion, and equipment purchases.

• 504 Loan Program: Used to finance the purchase of major assets like real estate or large equipment.

• Microloans: Smaller loan amounts for startups or micro-businesses, typically up to $50,000.

Best for: Long-term funding with competitive rates, for businesses that meet SBA requirements.

​

2. Term Loans

A term loan is a lump sum of capital that’s paid back over a set period of time. This is one of the most common types of business loans, suitable for businesses that need a one-time injection of capital for expansion, equipment purchases, or major expenses.

Best for: Established businesses with a strong financial history and clear purpose for the loan.

​

3. Business Line of Credit

A business line of credit provides flexible access to capital, giving you the ability to borrow funds as needed and only pay interest on what you use. This is great for businesses that have cyclical or unpredictable cash flow.

Best for: Short-term needs, working capital, and businesses with fluctuating income.

​

4. Invoice Financing (Factoring)

If your business deals with clients on long payment terms, invoice financing can help bridge the gap between issuing invoices and receiving payment. You sell your unpaid invoices to a lender for a percentage of the total amount, providing immediate cash flow.

Best for: Businesses with outstanding invoices and a need for quick capital.

​

5. Merchant Cash Advances (MCA)

A Merchant Cash Advance gives businesses an advance on future credit card sales. This can be an attractive option for businesses with strong, consistent daily sales but can be more expensive than other loan types.

Best for: Businesses with high daily credit card transactions who need quick cash but can handle a higher cost of capital.

6. Equipment Financing

Equipment financing allows you to purchase or lease equipment needed for your business without having to pay the full price upfront. The equipment itself acts as collateral, making this a lower-risk loan option for the lender.

Best for: Businesses needing to acquire specific machinery, tools, or technology.

7. Commercial Real Estate Loans

For businesses looking to buy, refinance, or renovate commercial properties, a commercial real estate loan is the way to go. These loans can cover a variety of property-related costs, including real estate for expansion or as a long-term investment.

Best for: Businesses planning to purchase or refinance commercial property.

8. Business Credit Cards

Business credit cards offer a flexible and convenient way to manage business expenses, offering rewards and cash-back benefits for businesses with frequent expenses. It’s an excellent short-term financing solution, especially for everyday business purchases.

Best for: Startups or small businesses that need quick access to capital for smaller, recurring expenses.

9. Working Capital Loans

Working capital loans are designed to cover the daily operational costs of your business. These loans help ensure you have the cash to handle payroll, inventory, and other short-term financial needs, without having to secure long-term financing.

Best for: Small businesses with seasonal cash flow issues or unexpected expenses.

10. Bridge Loans

Bridge loans are short-term loans designed to “bridge” the gap between immediate funding needs and longer-term financing solutions. This type of loan is ideal when you need quick cash for an acquisition, business expansion, or other urgent business purposes.

Best for: Businesses needing quick capital while awaiting longer-term funding or the sale of an asset.

11. Alternative Financing

For businesses that don’t meet the qualifications for traditional loans, alternative financing options such as peer-to-peer lending, crowdfunding, or angel investing may be available. These options provide unique ways for businesses to raise capital without going through a bank.

Best for: Startups or businesses with unconventional funding needs that don’t fit the traditional lending models.