There are more ways to fund a business than your bank offers.
Our lender network spans 22 funding categories. These are the seven that most businesses actually end up using — and your bank does two of them. That's why a decline feels like the end of the road when it's closer to the start of the list. Here's what each one really costs, and — the part nobody writes down — when it's the wrong answer.
See My Funding Options Free, no obligation, and no credit pull to start.Ordered by what they cost you — cheapest first.
That order is deliberate. Plenty of brokers lead with the expensive products because they pay better. We'd rather you saw the cheap money first and only moved down the list if you had to.
SBA Loans
A loan from an ordinary lender that the Small Business Administration partially guarantees. That guarantee is what lets the lender offer longer terms and lower rates than they otherwise would — which is why SBA money is generally the cheapest capital a small business can get.
Who it fits
Established businesses with reasonable credit and clean books that can afford to wait. Especially strong for buying a building, acquiring another business, or refinancing expensive debt into something survivable.
What you'll need
Two to three years of business and personal tax returns, financial statements, a business plan for larger requests, and patience. Personal guarantees are standard, and collateral is common above certain amounts.
When it's the wrong choice
You need the money this month. SBA files routinely take 30 to 90 days and sometimes longer. If payroll is Friday, this is the wrong door — and applying here first costs you weeks you may not have.
Term Loans
A lump sum, repaid on a fixed schedule over a set period. The most conventional business loan there is, and the one most owners picture when they say “loan.” Rates and terms swing widely depending on the lender and your profile.
Who it fits
A defined, one-off need with a predictable return — a build-out, an acquisition, a large inventory buy. Businesses with steady revenue and at least a year or two of history tend to see the best pricing.
What you'll need
Bank statements, time in business, and revenue that comfortably covers the payment. Stronger credit moves the rate more here than on almost any other product on this page.
When it's the wrong choice
Your need is ongoing rather than one-off. Taking a lump sum to cover recurring gaps means paying interest on money that sits idle. A line of credit is usually the cheaper answer to that problem.
Not sure which of these you'd qualify for?That's the point of the application — it checks you against all of them at once, with no credit pull to start.
See My Funding OptionsBusiness Lines of Credit
A revolving limit you draw against as needed and repay as you go, paying interest only on the balance you're actually using. Closer to a credit card than a loan in how it behaves, but usually at materially better pricing.
Who it fits
Uneven cash flow. Seasonal businesses, anyone waiting on customer payments, anyone who wants a cushion sitting there before the emergency rather than after it. Also the best product to open before you need it.
What you'll need
Consistent deposits and revenue history matter more than a single strong month. Lenders want to see the account behave predictably over time.
When it's the wrong choice
You'd struggle not to spend it. A line that stays maxed out is a term loan with a worse rate and no end date. If the discipline isn't there, a fixed-payment product will cost you less in the end.
Equipment Financing
Financing tied to a specific piece of equipment, where the equipment itself serves as the collateral. Because the lender can repossess the asset, approval leans on the equipment's value as much as on your credit — which is what makes this reachable when general lending isn't.
Who it fits
Trucks, machinery, kitchen build-outs, medical and dental equipment, production lines. Often the easiest approval available to a business the banks have already declined, because the risk sits in the asset.
What you'll need
A quote or invoice for the specific equipment, some down payment in many cases, and evidence you can carry the payment. Newer businesses have real options here that they don't have elsewhere.
When it's the wrong choice
You need working capital rather than a machine. These funds go to the vendor, not to your account. And financing equipment that will be obsolete before the term ends leaves you paying for something you no longer use.
Your bank offers two of these. We work with all eight.One free application, 500+ lenders, and a person who reads it.
See My Funding OptionsInvoice Factoring
You sell your unpaid invoices at a discount and receive most of the value immediately, with the balance released when your customer pays. Not a loan — you're selling an asset you already own, which is why it works differently from everything above.
Who it fits
B2B businesses with slow-paying customers. Staffing, freight, manufacturing, government contractors — anyone whose money is real but 60 days away. Approval leans on your customers' credit rather than yours, which makes this genuinely accessible after a decline.
What you'll need
Invoices to creditworthy commercial customers and clean records showing the work was completed. Your own credit matters far less than usual.
When it's the wrong choice
You sell to consumers, or your customers pay on time already. And be clear-eyed that some arrangements mean the factor contacts your customers directly — if that relationship is delicate, ask exactly how collection is handled before you sign.
Declined somewhere already?Many of the lenders behind these products weigh your revenue and time in business more heavily than your score.
See My Funding OptionsRevenue-Based Financing
Capital repaid as a fixed percentage of your ongoing revenue rather than a set monthly figure. Strong months repay faster, quiet months repay slower, and the total repaid is agreed at the start.
Who it fits
Businesses with real revenue but an uneven shape to it, and owners who'd rather have the payment breathe with the business than fight a fixed number in a slow month. Underwriting weighs revenue and deposit history far more heavily than credit score.
What you'll need
Consistent deposits, usually several months of bank statements, and revenue above the lender's floor. Credit is considered but rarely decisive.
When it's the wrong choice
Your margins are thin. A percentage off the top hurts far more at 8% margin than at 40%. Work out what the payment does to your actual take-home before committing, not after.
Merchant Cash Advances
An advance against your future card sales or deposits, repaid through a daily or weekly draft. Priced as a factor rate rather than an interest rate, which makes it look cheaper than it is — the equivalent annualized cost is frequently very high.
Who it fits
Genuine emergencies with a clear, short payback. A repair that stops you trading, a time-limited inventory buy at a real discount, a bridge to a receivable you can prove is coming. Funding can arrive in a day or two, and approval is the most forgiving on this page.
What you'll need
Card volume or bank deposits, and usually just a few months of statements. Credit requirements are the loosest of anything here.
When it's the wrong choice
Most of the time, honestly. If you're using an advance to cover last month's advance, that's a warning worth taking seriously rather than refinancing. We'll show you this option when it fits — but we'll show you everything cheaper first, and we'll tell you plainly when it doesn't.
The seven, side by side
Speed and cost pull against each other on almost every product here. The fastest money is the most expensive money, and that trade-off is the single most useful thing to understand before you borrow.
| Funding type | Speed | Relative cost | Best suited to |
|---|---|---|---|
| SBA Loans | Slowest | Lowest | Buying property, acquisitions, refinancing expensive debt |
| Term Loans | Moderate | Low to moderate | A defined one-off project with a predictable return |
| Lines of Credit | Moderate | Low to moderate | Uneven cash flow and seasonal gaps |
| Equipment Financing | Fast | Low to moderate | A specific machine, vehicle or build-out |
| Invoice Factoring | Fast | Moderate | B2B businesses waiting 30–90 days to get paid |
| Revenue-Based Financing | Fast | Higher | Real revenue, uneven shape, healthy margins |
| Merchant Cash Advances | Fastest | Highest | Short, genuine emergencies with a clear payback |
One application. Every category checked.
You don't have to work out which of these you want. The application checks your business against more than 500 lenders across all 22 funding categories. After you apply and upload your documents, you'll see what you may qualify for in your own portal — and an advisor walks you through it, including which options to ignore.
See My Funding OptionsCost and speed above are general market context to help you compare categories — they are not quotes, offers, or a promise of what any lender will provide. Actual pricing, terms and timelines are set by the individual lender based on your business and credit profile. Anchor & Merchant is not a lender and does not make credit decisions.