When a business needs money, the right source depends on how fast you need it, how much you need and what you can offer in return. Here are seven ways owners find money for their business, from fastest to slowest, with the tradeoffs of each.
1. Merchant cash advance
A lump sum repaid through a fixed daily or weekly payment. Offers usually take 1 to 5 hours, and funding typically takes 24 to 48 hours. It costs more than a bank loan, but it is fast and does not require collateral on our Direct program. Start with the merchant cash advance guide.
2. Business line of credit
You get a limit and draw only what you need, paying interest on what you borrow. It works well for recurring or unpredictable expenses. See lines of credit.
3. Equipment financing
Finance the machine itself and let it earn its keep. Terms can reach 10 years. See equipment financing.
4. Asset based financing or home equity
If you own property or other assets, you can use them as collateral for larger amounts and longer terms. A home equity line can reach $750,000 depending on appraisal and existing liens. See asset based financing and home equity lines.
5. Bank or SBA loans
Lower cost, slower process. Worth applying for if you have time and strong paperwork. Read the comparison in MCA vs SBA loan.
6. Faster collections and smarter terms
Not every dollar has to come from outside. Invoice customers sooner, offer a small discount for early payment, ask suppliers for longer terms and trim slow moving inventory. These steps free cash at no cost.
7. Lower your processing costs
Credit card fees quietly drain money from a business. Reviewing your processing can put money back every month. Our partners offer a free point of sale terminal, and pricing that aims to be competitive with, or better than, what you pay today. Savings vary. See credit card processing.
How to choose
| Need | Good fit |
|---|---|
| Money this week | Merchant cash advance |
| Ongoing flexibility | Line of credit |
| A big purchase | Equipment or asset based financing |
| Lowest cost, time to wait | Bank or SBA loan |
To work with us you need at least 1 year in business and at least $5,000 in monthly revenue. We fund $10,000 to $5,000,000 and use a soft pull only. Our business funding page has the full picture, and transparent terms shows the numbers.
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).
