Business financing is any money a company brings in from outside to pay for operations or growth. The options look similar from far away, but they differ a lot in speed, cost, paperwork and what they ask of you. This guide walks through the main choices so you can match the product to the job.
The main types of business financing
Bank and SBA loans
Traditional term loans usually have the lowest total cost. The tradeoff is time and paperwork. Tax returns, a business plan and strong credit are common requirements, and decisions can take weeks. If you can wait and you qualify, they are worth a look. We compare them in detail in merchant cash advance vs SBA loan.
Business lines of credit
A line of credit lets you draw cash as you need it and pay interest only on what you borrow. It suits owners with uneven expenses. Through our partners, terms run up to 12 months with funding typically in 24 to 48 hours. Learn more on our lines of credit page.
Equipment financing
When the purchase is a truck, oven, scanner or machine, equipment financing spreads the cost over time, and the equipment itself backs the deal. Terms can reach 10 years, and approval takes about 5 business days through our partners. See equipment financing.
Asset based financing and home equity
If you own property, vehicles or other assets, you can borrow against them for larger, longer term needs. Terms can reach 10 years. Details are on our asset based financing and home equity line of credit pages.
Merchant cash advance
A merchant cash advance gives you a lump sum in exchange for a fixed amount paid back through a fixed daily or weekly payment. It is not a loan, it uses a factor rate instead of an interest rate, and it is built for speed. Terms are typically up to 10 months. Our full explainer is the merchant cash advance guide.
How to compare business financing options
| Question | What to look for |
|---|---|
| How fast do I need it? | Days points to an advance or line. Weeks or months points to a bank loan. |
| What is the total cost? | Compare total payback, not only the headline number. Our funding calculator shows the math. |
| How long is the term? | Short terms mean larger payments but less time paying. |
| What is the credit check? | A soft pull does not affect your score. A hard pull can. |
| Is collateral required? | Our Direct advance needs none. Asset based products do by design. |
Match the financing to the job
- Seasonal inventory: a line of credit or advance, because you need the cash fast and will repay from sales.
- Big equipment: equipment financing, so the asset pays for itself over its life.
- Growth project with time to plan: a bank or SBA loan if you qualify.
- Cash flow gap or surprise opportunity: a merchant cash advance for speed.
What we look for
To qualify with us, you need at least 1 year in business and at least $5,000 in monthly revenue. Our minimum credit score is 500, and we use a soft pull only. Funding ranges from $10,000 to $5,000,000. For the full picture of how it all fits together, read our business financing and business funding pages, and check the exact numbers on transparent terms.
See what you qualify for
Offers usually come in 1 to 5 hours on a complete file, with funding typically in 24 to 48 hours from application. We use a soft pull only, so applying does not affect your credit score. Apply now or call 1-866-737-6278 (866-Re-Smart). Prefer to start with numbers? Try the qualification estimator and the cost calculator.
All funding is subject to underwriting and approval. Amounts, factor rates, fees and timing vary by applicant and transaction. A merchant cash advance is not a loan. Smart Business Funding® is a registered trademark (U.S. Reg. No. 7,637,151).
