Match the job to a type of financing.
Working capital, lines of credit, equipment, term loans, SBA, and commercial real estate. Merchant cash advances and invoice factoring sit here too, and they are not loans. Read the type that fits what the money is for, then submit one application. You do not have to pick the perfect label.
Which type to read
- Payroll, inventory, or a slow season. Working capital if you need one amount now. A line of credit if the need comes and goes.
- A machine or a vehicle you will keep: equipment. A building: commercial real estate.
- A planned spend over months or years: a term loan, or SBA if you can wait on more paperwork.
- An MCA and invoice factoring are not loans. Read those pages before you treat them like a term loan.
The types
Working capitalOne amount for payroll, inventory, or a gap.
Line of creditA limit you draw, repay, and draw again.
EquipmentA machine or vehicle the business will keep.
Term loanOne amount, paid back on a schedule.
SBAGovernment-backed. More documents. A slower clock.
Commercial real estateBuy business property, or bridge a short gap.
Merchant cash advanceAn amount against future sales. Not a loan.
Invoice factoringCash against unpaid B2B invoices. Not a loan.You do not have to pick the perfect label. Choose Not sure on the application.