Business funding options on Funding Fastlane

Merchant Cash Advance (Revenue-Based Advance)

Mon, 01 Jan 0001 00:00:00 +0000

How it works

A funder gives you a lump sum today. You repay a fixed total, the amount multiplied by a factor rate (typically 1.15 to 1.49), through automatic daily or weekly debits from your business bank account, or a percentage of card sales. There is no interest rate and no fixed term; the payback period is whatever it takes your revenue to cover the total.

	Typical range
Amount	$5,000 – $500,000 (usually 50–150% of one month’s deposits)
Factor rate	1.15 – 1.49
Time to fund	Same day to 3 business days
Payback	3 – 18 months, daily or weekly ACH
Minimums	6+ months in business, $10k+/month deposits, 500+ credit

What it really costs

A $50,000 advance at 1.30 means you repay $65,000. If it takes 8 months, that is a cost of $15,000 and an effective APR near 90%, because you are paying back so fast. The same $15,000 fee over 18 months is a far lower APR. Always run a quote through the advance cost calculator before you sign.

Business Line of Credit

Mon, 01 Jan 0001 00:00:00 +0000

How it works

A lender approves a limit, say $100,000. You draw $20,000 today, repay it weekly or monthly over 6–24 months, and the $20,000 becomes available again as you repay. Interest accrues only on the outstanding balance.

	Online lenders	Banks / credit unions
Limit	$10k – $250k	$50k – $1M+
Rate	12% – 45% APR	Prime + 1–5%
Approval	1–3 days	2–6 weeks
Minimums	6–12 months, $10k–$25k/mo revenue, 600+ credit	2+ years, profitability, 680+

Why it beats an advance

The same $20,000 draw over 6 months on a 25% APR line costs about $1,500. A 1.30 factor advance costs $6,000. And the line is still there next time.

Business Term Loans

Mon, 01 Jan 0001 00:00:00 +0000

How it works

You borrow a set amount and repay it in equal monthly (sometimes weekly) payments over a fixed term. Interest is quoted as APR, so comparing offers is straightforward.

	Online lenders	Banks
Amount	$10k – $500k	$50k – $5M
APR	9% – 40%	7% – 12%
Term	1 – 5 years	3 – 10 years
Funding time	2 – 10 days	3 – 8 weeks
Minimums	1–2 years, $100k+/yr revenue, 620+ credit	2+ years, profitable, 680+

Best uses

Expansion: a second location, a major hire, a renovation.
Buying out a partner or acquiring a small competitor.
Consolidating expensive short-term debt (advances, cards) into one lower payment. This is the single best use of a term loan for many businesses.

What lenders look at

Cash flow: can the business cover the new payment with 1.25x room to spare?
Time in business: two years unlocks most lenders and the best pricing.
Credit: personal score of the owner(s) and any business credit file.
Existing debt: stacked advances are the most common reason for decline.

Tip

Run the numbers on the loan payment calculator and include the origination fee (2–6% is common). A 3% fee on a 2-year loan adds about 1.5 points of APR.

SBA Loans

Mon, 01 Jan 0001 00:00:00 +0000

How it works

You apply through a participating lender. The SBA guarantees part of the loan (often 75–85%), which lets the lender offer terms no other product matches. In exchange you provide full financials, tax returns, a personal guarantee from every 20%+ owner and, frequently, collateral.

Program	Amount	Typical use	Term
7(a)	up to $5M	working capital, expansion, acquisition, refinance	up to 10 yrs (25 for real estate)
504	up to $5.5M (SBA share)	owner-occupied real estate, heavy equipment	10, 20 or 25 yrs
Microloan	up to $50k	startups, very small businesses	up to 7 yrs
Express	up to $500k	faster 7(a) variant, lines of credit	up to 10 yrs

Rates are capped relative to prime and are typically the lowest a small business can get. Confirm current caps at sba.gov.

Equipment Financing

Mon, 01 Jan 0001 00:00:00 +0000

How it works

The lender pays the vendor directly and takes a lien on the equipment. Because they can repossess and resell it, they accept weaker credit and newer businesses than unsecured lenders would.

	Typical range
Amount	80–100% of equipment cost, $5k – $2M+
APR	7% – 30%
Term	2 – 7 years (matched to useful life)
Down payment	0 – 20%
Minimums	6+ months in business, 600+ credit (lower with a down payment)

Why it often beats a general loan

Longer terms, so lower monthly payments.
Approval rests on the asset, not only on your financials.
Section 179 lets many businesses deduct the full purchase price in the year of purchase (talk to your accountant).

Watch for

Blanket liens: the lender should take a lien on the equipment only, not all business assets.
Documentation fees and end-of-lease “fair market value” buyouts that were never quoted.
Financing soft costs (installation, training) at the same rate. Reasonable, but confirm it is included.

Invoice Factoring

Mon, 01 Jan 0001 00:00:00 +0000

How it works

You sell an invoice to a factor. They advance 80–95% immediately, collect from your customer when it is due, and send you the balance minus their fee.

	Typical range
Advance rate	80% – 95% of invoice value
Fee	1% – 5% of invoice per 30 days
Speed	24–72 hours after setup
Minimums	B2B or B2G invoices, creditworthy customers, often $10k+/month in invoices

Who it fits

Staffing, trucking, construction subs, wholesalers, manufacturers, government contractors: anyone who delivers now and gets paid in 30–90 days.
Fast-growing companies whose receivables grow faster than their cash.
Owners with weak personal credit but strong customers.

The math

A $50,000 invoice, 90% advance, 2.5% fee per 30 days, paid in 45 days: you get $45,000 today and about $3,100 later, paying $1,875 for the money. Compare that to the advance cost calculator before choosing an MCA to cover the same gap.

0% Intro APR Business Credit Cards

Mon, 01 Jan 0001 00:00:00 +0000

How it works

A business credit card with a 0% introductory APR gives you a revolving limit you can carry interest-free for the promotional period (commonly 9–18 months). After that, the standard rate (18–30% APR) applies to any remaining balance.

Why it belongs in the mix

Effectively a free short-term loan if you pay it off inside the promo window.
Available at 0–12 months in business when almost nothing else is.
Rewards (1–5%) on spend you were going to make anyway.
Builds a business credit file that helps with lines and term loans later.

Limits

Credit limits are usually $5k–$50k, sometimes more with strong income.
Cash advances are expensive; use the card for purchases, not ATM withdrawals.
Needs a personal credit score of roughly 670+ for the best 0% offers.

Strategy

Pair a 0% card with a revenue-based advance only if you must; better, use the card for the flexible part of your need and a term loan or equipment financing for the large fixed part. Set a payoff schedule so the balance is gone before the promo ends.

Startup Funding (Under 1 Year in Business)

Mon, 01 Jan 0001 00:00:00 +0000

Option	What you need	Amount	Notes
0% intro APR business card	670+ personal credit	$5k – $50k	Free capital for 9–18 months if paid off
SBA Microloan	plan, personal credit, intermediary in your area	up to $50k	8–13% typical, offered by nonprofits, includes coaching
CDFI / community lender	mission fit (location, owner demographics)	$5k – $250k	Slower, friendlier underwriting, often the best rate you can get
Revenue-based advance	3–6 months of $10k+/mo deposits	50–150% of monthly deposits	Expensive; only for a clear, fast return
Grants and competitions	eligibility fit, a good application	$1k – $50k	Free money, low odds, worth a few hours a month
Equipment financing	600+ credit, down payment	cost of the equipment	Approvals at 6+ months are common
Personal loan / HELOC	personal credit and income	$5k – $100k+	You are personally on the hook; price it honestly

What to do in the first year

Open a dedicated business bank account on day one. Every lender underwrites off those statements.
Get an EIN and a D-U-N-S number, then a business card that reports to the business bureaus.
Avoid overdrafts and negative balance days. They are the first thing advance and line underwriters look for.
Apply for grants in batches, not one-offs. Build one master application and adapt it.
At month 6 with steady deposits, revisit the 60-second match: a line of credit becomes possible; at month 12, term loans open up.

What to avoid

“Guaranteed approval” startup loans that charge an upfront fee. See how to spot funding scams.
Stacking two or more advances in your first year. It is the fastest way to a business that only works to pay funders.

Business funding options on Funding Fastlane

Merchant Cash Advance (Revenue-Based Advance)

How it works

What it really costs

Business Line of Credit

How it works

Why it beats an advance

Business Term Loans

How it works

Best uses

What lenders look at

Tip

SBA Loans

How it works

Equipment Financing

How it works

Why it often beats a general loan

Watch for

Invoice Factoring

How it works

Who it fits

The math

0% Intro APR Business Credit Cards

How it works

Why it belongs in the mix

Limits

Strategy

Startup Funding (Under 1 Year in Business)

The realistic menu at 0–12 months

What to do in the first year

What to avoid