Business financing basics
What each kind of business financing is, what it really costs and who it tends to suit. No product here is an offer; we don't lend or broker.
- ArticleSBA Loans Explained: 7(a), 504 and Microloans in Plain EnglishHow SBA-backed loans work, current program limits for 7(a), SBA Express, 504 and microloans, guarantees, rate caps and what applicants are usually asked for.
- ArticleBusiness Line of Credit vs Term Loan: Which Fits the Need?The difference between a business line of credit and a term loan, how each is priced and repaid, and how to match the product to what the money is for.
- ArticleInvoice Factoring: How It Works and What It Really CostsHow invoice factoring and invoice financing work, recourse vs non-recourse, how fees add up per month an invoice stays open, and when factoring makes sense.
- ArticleEquipment Financing and Leasing: Loans, Leases and the Fine PrintHow equipment loans and leases work, $1 buyout vs fair-market-value leases, down payments, useful life, and how to compare equipment offers on total cost.
- ArticleRevenue-Based Financing: How Repayment From Sales WorksHow revenue-based financing works, the repayment cap and revenue share, how its cost changes with growth, and how it compares with loans and merchant cash advances.
- ArticleMerchant Cash Advances and Factor Rates: The Real Cost in APRHow merchant cash advances and factor rates work, why a 1.3 factor rate is not 30% interest, worked APR conversions, and the contract terms to read before signing.
- ArticleWhat Lenders Look At When a Small Business AppliesHow lenders evaluate small-business loan applications: cash flow, credit, collateral, capital and character, the documents they ask for and recent Fed survey data.