Top 10 Business Funding Options Compared
Everything you need to know about each funding type - rates, requirements, and which is right for you
Quick Comparison
| Rank | Funding Type | Amount | Rate | Speed | Min Credit |
|---|---|---|---|---|---|
1 | Business Line of Credit | $10K - $250K | 10-25% APR | 2-5 days | 600+ |
2 | 0% Credit Stacking | $50K - $250K+ | 0% (intro periods) | 2-4 weeks | 680+ |
3 | Term Loans | $25K - $500K | 8-30% APR | 3-7 days | 580+ |
4 | SBA Loans | $50K - $5M | 5-10% APR | 4-8 weeks | 680+ |
5 | Equipment Financing | $10K - $500K | 8-20% APR | 2-5 days | 600+ |
6 | Invoice Factoring | $10K - $500K | 1-5% per month | 1-3 days | Any |
7 | Merchant Cash Advance | $5K - $250K | 1.15-1.5 factor rate | 1-2 days | 500+ |
8 | Asset-Based Lending | $100K - $5M | 7-18% APR | 1-2 weeks | 600+ |
9 | Revenue-Based Financing | $10K - $500K | Varies by revenue | 3-7 days | 580+ |
10 | Business Credit Cards | $5K - $50K per card | 15-25% APR | Instant - 1 week | 650+ |
Detailed Breakdown
1
Business Line of Credit
Ongoing cash flow needs
Amount
$10K - $250K
Rate
10-25% APR
Speed
2-5 days
Min Credit
600+
Pros
- Only pay interest on what you use
- Revolving credit
- Fast access
Cons
- Variable rates
- May require collateral
2
0% Credit Stacking
Large purchases, no interest needed
Amount
$50K - $250K+
Rate
0% (intro periods)
Speed
2-4 weeks
Min Credit
680+
Pros
- Zero interest for 12-21 months
- Builds business credit
- No collateral
Cons
- Requires good credit
- Multiple applications
3
Term Loans
One-time large investments
Amount
$25K - $500K
Rate
8-30% APR
Speed
3-7 days
Min Credit
580+
Pros
- Predictable payments
- Larger amounts
- Fixed rates available
Cons
- Personal guarantee often required
- Prepayment penalties possible
4
SBA Loans
Established businesses, lowest rates
Amount
$50K - $5M
Rate
5-10% APR
Speed
4-8 weeks
Min Credit
680+
Pros
- Lowest interest rates
- Long terms (10-25 years)
- Government backed
Cons
- Slow approval process
- Strict requirements
- Extensive documentation
5
Equipment Financing
Buying specific equipment
Amount
$10K - $500K
Rate
8-20% APR
Speed
2-5 days
Min Credit
600+
Pros
- Equipment serves as collateral
- Fast approval
- 100% financing possible
Cons
- Limited to equipment purchases
- Equipment must hold value
6
Invoice Factoring
B2B with outstanding invoices
Amount
$10K - $500K
Rate
1-5% per month
Speed
1-3 days
Min Credit
Any
Pros
- Very fast funding
- No credit check
- Not technically debt
Cons
- Expensive over time
- Requires B2B invoices
- Clients may be contacted
7
Merchant Cash Advance
Emergency funding, retail businesses
Amount
$5K - $250K
Rate
1.15-1.5 factor rate
Speed
1-2 days
Min Credit
500+
Pros
- Fastest approval
- Flexible requirements
- Payments tied to revenue
Cons
- Most expensive option
- Daily/weekly payments
- Can create cash flow issues
8
Asset-Based Lending
Businesses with significant assets
Amount
$100K - $5M
Rate
7-18% APR
Speed
1-2 weeks
Min Credit
600+
Pros
- Large amounts available
- Assets as collateral
- Flexible use
Cons
- Requires valuable assets
- Complex process
- Assets at risk
9
Revenue-Based Financing
High-growth businesses
Amount
$10K - $500K
Rate
Varies by revenue
Speed
3-7 days
Min Credit
580+
Pros
- No fixed payments
- Scales with revenue
- Fast approval
Cons
- Expensive in good months
- Requires consistent revenue
- Can be costly
10
Business Credit Cards
Small purchases, building credit
Amount
$5K - $50K per card
Rate
15-25% APR
Speed
Instant - 1 week
Min Credit
650+
Pros
- Instant decisions
- Rewards programs
- Builds business credit
Cons
- Lower limits initially
- High interest if carried
- Can hurt credit utilization
Which Option is Right for You?
If You Need Speed
- 1.Merchant Cash Advance (1-2 days)
- 2.Invoice Factoring (1-3 days)
- 3.Business Line of Credit (2-5 days)
If You Have Bad Credit
- 1.Invoice Factoring (any credit)
- 2.Merchant Cash Advance (500+)
- 3.Term Loans (580+)
If You Want Low Rates
- 1.0% Credit Stacking (0% for 12-21 mo)
- 2.SBA Loans (5-10% APR)
- 3.Asset-Based Lending (7-18% APR)
Not Sure Which Option is Best?
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